if FINA is subject to 40% tax rate, what is the WACCfir FINA?
are $500 million, financed through ban as follows: 0 million borrowed at 9% on, paying 9% coupon with semi-annu -value bonds for $940 and had to incur – $20 million, paying $15 dividends per had to incur $10/share flotation cost. $200 million, the beta of FINA stocks market portfolio is 12 %. Couls WACC FINA in assets are $500 million financed through bank loans, bonde, preferred stocks and common stocks The amounts are as follows: Bank loans: 5 100 million borrowed at 9% Bonds: 5180 million paying on coupon with semi-annual payments, and maturity of 5 years. FINA sold its $1.000 par value bonds for $940 and had to incur $40 flotation cost per bond. Preferred Stocks: 520 million, paying $15 dividends per share. FINA sold its preferred shares for $210 and had to incur $10/share flotation cost. Common Stocks: $200 million, the beta of FINA stocks is 1.2. the 90 day Treasury yield is 1%, return on market portfolio is 12 % FINA is subject to 40% tax rate, what is the WACC for FINA?