Question
Calculate the WACC for Zee Corp. Zees has primarily long-term debt, currently trading at 950.25/bond. The 8% coupon, 25 year bonds have 12 years left
Calculate the WACC for Zee Corp. Zees has primarily long-term debt, currently trading at 950.25/bond. The 8% coupon, 25 year bonds have 12 years left to maturity. Zees preferred annual dividend is $2.55, and its preferred stock is currently trading at $32.00/share, 8,000 shares outstanding. Zee just paid common dividend of $1.66/share and is growing at a constant rate of 8.5% annually. Zees stock is priced at $23.50/share, and it has 35,000 shares of common stock outstanding. Zees total capital is $1.6 million and it is in the 32% marginal tax bracket.
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