Golden Eagle has 1,500 bo

Golden Eagle has 1,500 bo

Golden Eagle has 1,500 bonds outstanding with a $1,000 par value, a 5 percent coupon, 14 years to maturity, semiannual interest payments, and a market price equal to 98 percent of par. The firm also has 50,000 shares of common stock outstanding at a price per share of $43 and a beta of 1.1. The risk-free rate is 3 percent, the market risk premium is 7.5 percent, and the tax rate is 35 percent. What is the firm’s WACC? (When computing WACC, round your cost of debt to 4 decimal places when expressed as a decimal value.)

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