There are 121 million shares of common stock outstanding at $48 per share and 4 million shares of preferred stock outstanding. There is $956 million of debt outstanding. What is the WACC, using the market rates?
Other Info:
Debt: 12 year bond, 6.75%, coupon of $67.5, PV= 960.81
Preferred Stock: Dividend= $5.50, current price= $63.75.
Common Stock: Beta=1.45, excess market return of $5.63, risk-free rate of 6.05%