You are given the following information for Eastern Valley Inc. find out WACC
Tax Rate: 35%
Debt: 4000 Bonds outstanding (coupon rate of 7%, paid semi annually) with current yield to maturity of 8%. The Bonds have a par value
of $1,000 and are currently selling at 103% of par value.
Stocks: 90,000 shares outstanding, selling for $57 per share; beta is 1.10
Market: 8% market risk premium and 6% risk-free rate
Hint: You will have to use the market values to find the weights; Not all information this is given will be required to solve the problem.