XYZ Industries has 10 million shares of stock outstanding se…
XYZ Industries has 10 million shares of stock outstanding selling at $10 per share and an issue of $30 million in 8.5 percent, annual coupon bonds with a maturity of 25 years, selling at 102 percent of par ($1,000). If XYZ’s weighted average tax rate is 40 percent and its cost of equity is 15 percent, what is XYZ’s WACC?