question (1)

Caspian Sea Drinks' is financed with 65.00% equity and the remainder in debt. They have 10.00-year, semi-annual pay, 5.73% coupon bonds which sell for 97.60% of par. Their stock currently has a market value of $24.76 and Mr. Bensen believes the market estimates that dividends will grow at 3.74% forever. Next years dividend is projected to be $2.27. Assuming a marginal tax rate of 23.00%, what is their WACC (weighted average cost of capital)?

4 decimal points