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Given the following information for a Electronics company, findits WACC. Assume the company’s tax rate is 25 percent. Debt:28,000, 6.2 percent coupon bonds outstanding, $1,000 par value, 20years to maturity, selling for 99 percent of par; the bonds makesemiannual coupon payments. Common stock: 360,000 sharesoutstanding, selling for $51 per share; the beta is 1.82. Market:7.0 percent market risk premium and 3.6 percent risk-free rate.A.7.95%B.8.30%C.8.65%D.9.00%E.9.35%
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