Billick Brothers is estimating its WACC. The company has collected the following information:
Its capital structure consists of 40 percent debt and 60 percent common equity.
The company has 20-year bonds outstanding with a 10 percent annual coupon that are trading at par.
The company's tax rate is 30 percent.
The risk-free rate is 5 percent.
The market risk premium is 6 percent.·
The stock's beta is 1.5.What is the company's WACC?