nputs for WACC (Re computed using CAPM only) LT Debt: 8000 bonds outstanding of a 5-year maturity; 1020 = PV; 5.8% = Coupon Rate(Semiannual) Common Stock: 42,000 shares outstanding; $22 price today Preferred Stock: 9000 shares, 4.5% dividend yield, $108 share price Other CAPM Information: ERm = 8% Rf = 2.00% Beta = 1.12 Tax Rate = 21% What is the WACC (please show inputs in Excel)?

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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Inputs for WACC (Re computed using CAPM only)

LT Debt: 8000 bonds outstanding of a 5-year maturity; 1020 = PV; 5.8% = Coupon Rate(Semiannual)

Common Stock: 42,000 shares outstanding; $22 price today

Preferred Stock: 9000 shares, 4.5% dividend yield, $108 share price

Other CAPM Information:

ERm = 8%

Rf = 2.00%

Beta = 1.12

Tax Rate = 21%

What is the WACC (please show inputs in Excel)?

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