Tysseland company's present market value capital structure shwon below is optimal. There is no short-term debt.  Capiatal Component:    Market Value                             Debt                              30,000,000  Common Equity            90,000,000 Bonds have an 8% coupon rate, and they will be sold at par. Common stock is currently selling at $30 a share. The stockholder's required rate of return is estimated to be 12%, consisting of a dividend yield of 4% and an expected growth rate of 8%. (The next expected dividend is $1.20, so the dividend yield is $1.20/$30 = 4%.) The marginal tax rate is 30%. What is Tysseland;s WACC?

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Tysseland company's present market value capital structure shwon below is optimal. There is no short-term debt. 

Capiatal Component:    Market Value                            

Debt                              30,000,000 

Common Equity            90,000,000

Bonds have an 8% coupon rate, and they will be sold at par. Common stock is currently selling at $30 a share. The stockholder's required rate of return is estimated to be 12%, consisting of a dividend yield of 4% and an expected growth rate of 8%. (The next expected dividend is $1.20, so the dividend yield is $1.20/$30 = 4%.) The marginal tax rate is 30%. What is Tysseland;s WACC?

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