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Please help #4 Caspian Sea Drinks' is financed with 69.00% equity and the remainder in debt. They have 12.00-year, semi- annual pay, 5.83% coupon bonds
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#4 Caspian Sea Drinks' is financed with 69.00% equity and the remainder in debt. They have 12.00-year, semi- annual pay, 5.83% coupon bonds which sell for 98.56% of par. Their stock currently has a market value of $25.27 and Mr. Bensen believes the market estimates that dividends will grow at 3.32% forever. Next year's dividend is projected to be $2.90. Assuming a marginal tax rate of 31.00%, what is their WACC (weighted average cost of capital)? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924) C unanswered not_submitted Attempts Remaining: Infinity Step by Step Solution
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