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Calculating the WACC You are given the following information concerning Parrothead Enterprises: Debt: , 1 5 , 0 0 0 5 . 9 percent coupon
Calculating the WACC You are given the following information concerning Parrothead Enterprises:
Debt: percent coupon bonds outstanding, with years to maturity and a quoted price
of These bonds pay interest semiannually.
Common stock: shares of common stock selling for $ per share. The stock has a beta of
and will pay a dividend of $ next year. The dividend is expected to grow by percent
per year indefinitely.
Preferred shares of percent preferred stock selling at $ per share.
stock:
Market:
percent expected return, riskfree rate of percent, and a percent tax rate.
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