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Caspian Sea Drinks' is financed with 66.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.96% coupon bonds which sell for 97.25%
Caspian Sea Drinks' is financed with 66.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.96% coupon bonds which sell for 97.25% of par. Their stock currently has a market value of $25.48 and Mr. Bensen believes the market estimates that dividends will grow at 3.63% forever. Next years dividend is projected to be $2.08. Assuming a marginal tax rate of 23.00%, what is their WACC (weighted average cost of capital)?
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