WACC of firm with

Debt 40%

Preferred Equity 10%

Common Equity 50%

The firm’s tax rate is 30%.

The firm issued a 13% semi-annual coupon bond with 10 years term to maturity. The current trading price is $1,206.

The firm has preferred stock that pays an annual 9% dividend of $100 par value, and the current market price is $110.

The firm has a beta of 1.5, and their common stock is selling for $68 per share. Its last dividend was $4, and dividends are expected to grow at a constant rate of 8%. The current risk free return offered by Treasury security is 2.5%, and the market portfolio’s return is 10.5%.