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Score: 0 of 1 pt 8 of 11 (3 complete) V HW Score: 20%, 2.2 of 11 pt: P11-19 (similar to) Question Help Adjusted WACC.
Score: 0 of 1 pt 8 of 11 (3 complete) V HW Score: 20%, 2.2 of 11 pt: P11-19 (similar to) Question Help Adjusted WACC. Hollydale's is a clothing store in East Park. It paid an annual dividend of $2.30 last year to its shareholders and plans to increase the dividend annually at 4.5%. It has 460,000 shares outstanding. The shares currently sell for $26.52 per share. Hollydale's has 15,000 semiannual bonds outstanding with a coupon rate of 6.5%, a maturity of 23 years, and a par value of $1,000. The bonds are currently selling for $721.56 per bond. What is the adjusted WACC for Hollydale's if the corporate tax rate is 20%? What is the adjusted WACC for Hollydale's if the corporate tax rate is 20%? % (Round to two decimal places.)
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