Given the following, find the WACC assuming the tax rate is 30%. Debt: 3,500 bonds outstanding with 7.20% p.a. coupons paid semi-annually, $1000 face value, 25 years to maturity, current market yield...

Given the following, find the WACC assuming the tax rate is 30%.

• Debt: 3,500 bonds outstanding with 7.20% p.a. coupons paid semi-annually, $1000 face value, 25 years to maturity, current market yield is 5.72% p.a.


• Ordinary shares: 175,000 shares outstanding selling for $37 per share with beta of 1.15.


• Preference shares: pay a dividend of 8% p.a. forever on a $15 face value, 45,000 outstanding, currently selling for $14.20 per share.

Other information: Market risk premium = 7%, risk-free rate = 3.1% p.a.

Calculate the WACC.