Malitz Inc.recently hired you as a consultant to estimate the company's WACC.You have obtained the following information.- Malitz's noncallable bonds mature in 25 years,have an 8.00% annual coupon,a par value of $1,000,and a market price of $1,075.00.- The company's tax rate is 40%.- The risk-free rate is 4.50%,the market risk premium is 5.50%,and the stock's beta is 1.20.- The target capital structure consists of 35% debt and the balance as common equity.Malitz uses the CAPM to estimate the cost of equity,and it does not expect to issue any new common stock.What is its WACC?

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The Answer of Malitz Inc.recently hired you as a consultant to estimate the company's WACC.You have obtained the following information.- Malitz's noncallable bonds mature in 25 years,have an 8.00% annual coupon,a par value of $1,000,and a market price of $1,075.00.- The company's tax rate is 40%.- The risk-free rate is 4.50%,the market risk premium is 5.50%,and the stock's beta is 1.20.- The target capital structure consists of 35% debt and the balance as common equity.Malitz uses the CAPM to estimate the cost of equity,and it does not expect to issue any new common stock.What is its WACC?