What is the wacc for wippet industries


Question: Wippet Industries (WI) has a book value capital structure as shown below.

- Bonds pay annual coupons of $91

- Have 6 years to go until they mature

- Have a YTM of 7%

- Stock sells for $22 per share

- Has a beta of 1.39

- Expected return on the market is 12%

- t-bills pay 3.3%.

- Taxes are 32%.

What is the WACC for WI?

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