XYZ Industries has 10 million shares of stock outstanding selling at $10 per share with par of $1 per share. The company also has an issue of $30 million in 8.5 percent, annual coupon bonds with a maturity of 25 years, selling at 102 percent of par ($1,000). If XYZ's weighted average tax rate is 21 percent and its cost of equity is 15 percent, what is XYZ's WACC?
A) 8.06 percent
B) 11.75 percent
C) 13.02 percent
D) 13.43 percent

Question

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The Answer of XYZ Industries has 10 million shares of stock outstanding selling at $10 per share with par of $1 per share. The company also has an issue of $30 million in 8.5 percent, annual coupon bonds with a maturity of 25 years, selling at 102 percent of par ($1,000). If XYZ's weighted average tax rate is 21 percent and its cost of equity is 15 percent, what is XYZ's WACC?
A) 8.06 percent
B) 11.75 percent
C) 13.02 percent
D) 13.43 percent

XYZ Industries Has 10 Million Shares of Stock Outstanding Selling