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Caspian Sea Drinks' is financed with 65.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.26% coupon bonds which sell for 98.18%
- Caspian Sea Drinks' is financed with 65.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.26% coupon bonds which sell for 98.18% of par. Their stock currently has a market value of $24.65 and Mr. Bensen believes the market estimates that dividends will grow at 3.35% forever. Next year's dividend is projected to be $2.15. Assuming a marginal tax rate of 26.00%, what is their WACC (weighted average cost of capital)?
- Caspian Sea Drinks' is financed with 68.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.57% coupon bonds which sell for 98.41% of par. Their stock currently has a market value of $25.41 and Mr. Bensen believes the market estimates that dividends will grow at 3.74% forever. Next year's dividend is projected to be $2.11. Assuming a marginal tax rate of 27.00%, what is their WACC (weighted average cost of capital)?
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Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
3rd edition
1259252221, 007786168X, 9781259252228, 978-0077861681
