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Business, 18.03.2020 20:42 jamarlittles9132

The Saunders Investment Bank has the following financing outstanding. Debt: 150,000 bonds with a coupon rate of 11 percent and a current price quote of 108.0; the bonds have 20 years to maturity. 320,000 zero coupon bonds with a price quote of 16.0 and 30 years until maturity. Preferred stock: 240,000 shares of 9 percent preferred stock with a current price of $67, and a par value of $100. Common stock: 3,500,000 shares of common stock; the current price is $53, and the beta of the stock is .90. Market: The corporate tax rate is 25 percent, the market risk premium is 8 percent, and the risk-free rate is 5 percent. What is the WACC for the company?

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