ABC Corp has a beta of 1.5, the current risk-free interest rate is 3%, and the...

Question:

ABC Corp has a beta of 1.5, the current risk-free interest rate is 3%, and the expected return on the market is 12.0%. The market cap of ABC is $2 billion and the company has one 10-year bond outstanding with face value of$1 billion and coupon of 5%. The bond is trading at a premium price of 110. The company’s marginal tax rate is 25%. What is the ABC’s WACC?

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