Finding the WACC : Given the following information for Fairview Co

Finding the WACC : Given the following information for Fairview Co

Finding the WACC : Given the following information for Fairview Co., find the WACC. Assume the company’s tax rate is 35 percent.Debt: 7,000 8 percent coupon bonds outstanding, $1,000 per value, 20 years to maturity, selling for 104 percent of par; the bonds make semi-annual payments.Common Stock: 120,000 shares outstanding, selling for $82 per share; the beta is 1.20Preferred stock: 10,000 shares of 5.25 percent preferred stock outstanding, current selling for $80 per share.Market: 7 percent risk premium and 4.5 percent risk-free rate.


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