Question
Marie Corp. has $1490 in debt outstanding and $2137 in common stock (and no preferred stock). Its marginal tax rate is 40%. Marie's bonds have
Marie Corp. has $1490 in debt outstanding and $2137 in common stock (and no preferred stock). Its marginal tax rate is 40%. Marie's bonds have a YTM of 6.0%. The current stock price (Po) is $47. Next year's dividend is expected to be $2.51, and it is expected to grow at a constant rate of 5% per year forever. The company's W.A.C.C. is ____%. Round your final answer to 2 decimal places (example: enter 12.34 for 12.34%), but do not round any intermediate work in the process.
[Note: Correct answer feedback may show more than 2 decimal places, but you should still follow instructions above for entering your answers.]
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