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Comida corp. is a grocery store located in the midwest. It paid an annual dividend of $2.80 last year to its shareholders and plans to
Comida corp. is a grocery store located in the midwest. It paid an annual dividend of $2.80 last year to its shareholders and plans to increase the dividend annually at 2.0% forever. It has 400,000 shares outstanding. The shares currently sell for $23 per share. Comida Corp. has 10,000 semiannual bonds outstanding with a coupon rate of 7%, a maturity of 18 years, and a par value of $1,000. The bonds currently have a yield to maturity (YTM) of 8% per bond. What is the adjusted WACC for Comida Corp. if the corporate tax rate is 30%? What is the adjusted WACC for Comida corp. if the corporate tax rate is 30%? % (Round to two decimal places.)
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