Kruger Industrial Smoothing has the following: $100,000 face value 5% bonds paid semiannually that currently trade at
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Question:
Kruger Industrial Smoothing has the following:
$100,000 face value 5% bonds paid semiannually that currently trade at 1.05 with 6 years to maturity
1,000 preferred shares with a $25 par value, a $2.00 annual dividend paid quarterly and a current market value of $26 per share
5,000 common shares currently trading at $20 per share that pay a $2.50 annual dividend.
The firm has a 30% tax rate and an expected growth rate in common share dividends of 5% annually
What is the WACC for Kruger?
Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
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