Question
Adjusted WACC. Hollydale's is a clothing store in East Park. It paid an annual dividend of $2.10 last year to its shareholders and plans to
Adjusted
WACC.
Hollydale's is a clothing store in East Park. It paid an annual dividend of
$2.10
last year to its shareholders and plans to increase the dividend annually at
3.0%.
It has
500,000
shares outstanding. The shares currently sell for
$17.91
per share. Hollydale's has
18,000
semiannual bonds outstanding with a coupon rate of
9%,
a maturity of
16
years, and a par value of
$1,000.
The bonds are currently selling for
$959.29
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%?
nothing%
(Round to two decimal places.)
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