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Amy Holdings Ltd has 7.643 million shares of common stock outstanding, 5.718 million shares of preferred stock outstanding, and two bonds outstanding. The current share
Amy Holdings Ltd has 7.643 million shares of common stock outstanding, 5.718 million shares of preferred stock outstanding, and two bonds outstanding. The current share price of the common stock is $29.16. The most recent dividend paid was $2.195 and the dividend growth rate is expected to be 5.192%, The preferred stock is currently selling for $12.48 per share now. A constant dividend of $1.214 is expected to be paid annually forever. The first bond issue has a face value of $68.1 million, has a 5.123 percent coupon, and sells for 75.12 percent of par. The second issue has a face value of $59.2 million, has a 7.295 percent coupon, and sells for 131.41 percent of par. The first issue matures in 11 years, the second one in 18 years. The first bond has a YTM of 10.718%, the second bond has a YTM of 5.659% The tax rate is 38.7%. What is the company's WACC? (20 points)
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