Question
Five years ago , Qualtric issued 3,000 semi-annual bonds at a par value of $1,000 and a coupon rate of 7.00%. The bonds had an
Five years ago, Qualtric issued 3,000 semi-annual bonds at a par value of $1,000 and a coupon rate of 7.00%. The bonds had an original maturity of 15 years. These bonds are now trading in the open market for $1,060. The company's tax rate is 35% and its most recent dividend was $3.50. The company's dividends have been growing at 3.25% annually and they are expected to continue growing at that same rate. The price of Qualtric, Inc. stock is now trading for $50.75 per share and there are currently 113,300 shares outstanding. What is the current WACC for Qualtric, Inc.?
Excel sheet calculations and/or formulas are extremely helpful and much appreciated.
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