Question

WACC

Titan mining corporation has 8.5 million shares of common stock outstanding and 200000, 7.5 percent semi-annual bonds outstanding, par value 10000 each. The common stock currently sells for 34 per share and has a beta of 1.20 and the bonds have 15 years to maturity and sell for 93 percent of par. The market risk premium is 7 percent , T-bills are yielding 5 percent, and titan mining tax rate is 35% . Calculate WACC 

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