Saunders Investment Bank has the following financing outstanding.

*Debt:*

150,000 bonds with a coupon rate of 11 percent and a current price quote of 108; the bonds have 20 years to maturity. 320,000 zero coupon bonds with a price quote of 16 and 30 years until maturity. Both bonds have a par value of $1,000. Assume semiannual compounding.

*Preferred stock:*

240,000 shares of 9 percent preferred stock with a current price of $67, and a par value of $100.

*Common stock:*

3,500,000 shares of common stock; the current price is $53, and the beta of the stock is .9.

*Market:*

The corporate tax rate is 25 percent, the market risk premium is 8 percent, and the risk-free rate is 5 percent.

What is the WACC for the company? **(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)**

WACC ______%

### Recently Asked Questions

- Cox Corporation had 1,200,000 shares of common stock outstanding on January 1 and December 31 , year 2 . In connection with the acquisition of a subsidiary

- Suppose a nation has a GDP per capita of $ 25,000 . If the GDP per capita is growing at 5 % a year how long will it take before GDP per capita reaches $ 50,000

- One increment , or pulse , of the system clock is referred to as a _________ .