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Caspian Sea Drinks' is financed with 6 3 . 0 0 % equity and the remainder in debt. They have 1 2 . 0 0

Caspian Sea Drinks' is financed with 63.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.00% coupon bonds which sell for 97.85% of par. Their stock currently has a market value of $24.95 and Mr. Bensen believes the market estimates that dividends will grow at 3.07% forever. Next years dividend is projected to be $2.29. Assuming a marginal tax rate of 34.00%, what is their WACC (weighted average cost of capital)?

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