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Caspian Sea Drinks' is financed with 6 8 . 0 0 % equity and the remainder in debt. They have 1 0 . 0 0

Caspian Sea Drinks' is financed with 68.00% equity and the remainder in debt. They have 10.00-year, semi-annual pay, 5.03% coupon bonds which sell for 98.37% of par. Their stock currently has a market value of $24.63 and Mr. Bensen believes the market estimates that dividends will grow at 3.70% forever. Next years dividend is projected to be $2.01. Assuming a marginal tax rate of 20.00%, what is their WACC (weighted average cost of capital)?

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