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Find the WACC for ABC Corp using the information provided below.
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Common Stock: 300,000 shares outstanding, selling for $30 a share. Beta is 0.85.
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Preferred Stock: 50,000 shares outstanding, selling for $65 a share. The stock pays a
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$5 annual dividend.
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Debt: 9,000 8 percent coupon bonds outstanding selling at 115 percent of par. Current
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YTM is 6.5%.
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Market: 8 percent market risk premium and 2.5 percent risk free rate.
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