Leonardo Bonucci Company’s financial manager is planning to estimate the company’s WACC. She has acquired the...

Leonardo Bonucci Company’s financial manager is planning to estimate the company’s WACC. She has acquired the following information. The company's noncallable bonds have 20 years to maturity, have a 9.25% annual coupon paid semiannually, a par value of $1,000, and a market price of $1,075.00. The risk-free rate is 4.50%, the return on market is 11.50%, and the stock’s beta is 1.20. The target capital structure of the company consists of 35% debt and the balance is common equity. The company does not expect to issue any new common stock. The company’s tax rate is 40%. What is the Leonardo Bonucci Company’s WACC?

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jeff jeffy answered 1 year ago

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