Adjusted

WACC.

Hollydale's is a clothing store in East Park. It paid an annual dividend of

$1.60

last year to its shareholders and plans to increase the dividend annually at

4.0%.

It has

500,000

shares outstanding. The shares currently sell for

$23.34

per share. Hollydale's has

20,000

semiannual bonds outstanding with a coupon rate of

7.5%,

a maturity of

17

years, and a par value of

$1,000.

The bonds are currently selling for

$1,101.99

per bond. What is the adjusted WACC for Hollydale's if the corporate tax rate is

20%?

What is the adjusted WACC for Hollydale's if the corporate tax rate is

20%?

enter your response here%

(Round to two decimal places.)