The Saunders Investment Bank has the following financing outstanding.
Debt: bonds with a coupon rate of percent and a current price quote of ; the bonds have years to maturity.
zero coupon bonds with a price quote of and years until maturity. Both bonds have a par value of $ and semiannual
coupons.
Preferred stock: shares of percent preferred stock with a current price of $ and a par value of $
Common stock: shares of common stock; the current price is $ and the beta of the stock is
Market: The corporate tax rate is percent, the market risk premium is percent, and the riskfree rate is percent.
What is the WACC for the company?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
WACC
