Question
Caspian Sea Drinks' is financed with 68.00% equity and the remainder in debt. They have 10.00-year, semi-annual pay, 5.94% coupon bonds which sell for 98.30%
Caspian Sea Drinks' is financed with 68.00% equity and the remainder in debt. They have 10.00-year, semi-annual pay, 5.94% coupon bonds which sell for 98.30% of par. Their stock currently has a market value of $25.62 and Mr. Bensen believes the market estimates that dividends will grow at 3.03% forever. Next years dividend is projected to be $2.29. Assuming a marginal tax rate of 24.00%, what is their WACC (weighted average cost of capital)?
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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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The Millionaire Next Door The Surprising Secrets Of Americas Wealthy
Authors: Thomas J. Stanley, William D. Danko
1st Edition
1589795474, 978-1589795471
