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I need to be able to calculate this by hand, so a step by step would be nice. 18. Calculating the WACC. You are given

I need to be able to calculate this by hand, so a step by step would be nice.image text in transcribed

18. Calculating the WACC. You are given the following information concerning Parrothead Enterprises Debt: 13,000 6.2 percent coupon bonds outstanding, with 15 years to maturity and a quoted price of 107. These bonds pay interest semiannually 345,000 shares of common stock selling for $73.50 per share. The stock has a beta of .90 and will pay a dividend of $3.35 next year. The dividend is expected to grow by 5 percent per year inde finitely. Common stock: Preferred stock: 10,000 shares of 4.1 percent preferred stock selling at Market: Calculate the WACC for Parrothead Enterprises. $86 per share. 12 percent expected return, risk-free rate of 3.5 percent, and a 35 percent tax rate

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