You are told the wacc for the following firm is 795 percent


You are told the WACC for the following firm is 7.95 percent. The company pays no dividends. What is the beta for the company’s stock? Debt: 100,000 bonds with a par value of $1,000 and a quoted price of 112.30. The bonds have coupon rate of 6.1 percent and 25 years to maturity. 250,000 zero coupon bonds with a quoted price of 18.70 and 30 years to maturity. Preferred Stock: 95,000 shares of 5.2 percent preferred selling at a price of $105. Common Stock: 2,600,000 shares of stock selling at a market price of $81. Market: The market risk premium is 7 percent and the risk-free rate is 2.8 percent. The company is in the 40 percent tax bracket.

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Financial Management: You are told the wacc for the following firm is 795 percent
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