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Business, 15.11.2019 19:31 hbbarr2702

Usf inc. has 50,000 5.4% coupon bonds with $1,000 par value and a maturity date of 30 years. currently the bonds sell for 105 percent of par and makes semi-annual coupon payments. usf inc's common stock current market price is $62.00 and has a beta of 1.52. the current number of shares outstanding are 500,000. usf inc. also has 40,000 shares of preferred stock that currently sales for $90.00. the preferred stock has $100 par value and a coupon rate of 5.2%. currently, the expected market risk premium is 7.0% and the treasury bill is 2.5%. usf inc. believes that their marginal tax rate is 35%. what is the firm's weighted average cost of capital (wacc)?

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Usf inc. has 50,000 5.4% coupon bonds with $1,000 par value and a maturity date of 30 years. current...
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