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Caspian Sea Drinks' is financed with 67.00% equity and the remainder in debt. They have 12.00 -year, semi-annual pay, 5.13% coupon bonds which sell for
Caspian Sea Drinks' is financed with 67.00% equity and the remainder in debt. They have 12.00 -year, semi-annual pay, 5.13% coupon bonds which sell for 98.41% of par. Their stock currently has a market value of $25.21 and Mr. Bensen believes the market estimates that dividends will grow at 3.42\% forever. Next year's dividend is projected to be $2.26. Assuming a marginal tax rate of 34.00%, what is their WACC (weighted average cost of capital)? Attempts Remaining: Infinity Answer format: Percentage Round to: 2 decimal places (Example: 9.24%,% sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))
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