Caspian Sea Drinks is considering the purchase of a plum juicer the PJX5. There is no planned increase in production. The PJX5 will reduce costs by squeezing more juice from each plum and doing so in a more efficient manner. Mr. Bensen gave Derek the following information. What is the WACC?

a. CSDs marginal tax rate is 32.00%.

b. CSD is 63.00% equity-financed.

c. CSDs 11.00-year, semi-annual pay, 5.77% coupon bond sells for $991.00.

d. CSDs stock currently has a market value of $21.61 and Mr. Bensen believes the market estimates that dividends will grow at 2.93% forever. Next years dividend is projected to be $1.63.