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ABC Company Has a Capital Structure with Debt and Equity

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ABC company has a capital structure with debt and equity.Debt - $50 million face value bonds maturing in 15 years with a coupon rate of 4% paid semi-annually.Similar bonds are selling at 97.5.Equity - There are 2,000,000 shares outstanding.The investor's return is 10%.The next dividend is $3.5 with a growth rate of 4% into the future.Tax rate is 30%.Given the following information, calculate its WACC.

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7.93% Usin...

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