Question
Seven years ago , Qualtric issued 3,750 semi-annual bonds at a par value of $1,000 and a coupon rate of 7.25%. The bonds had an
Seven years ago, Qualtric issued 3,750 semi-annual bonds at a par value of $1,000 and a coupon rate of 7.25%. The bonds had an original maturity of 20 years. These bonds are now trading in the open market for $1,075. The company's tax rate is 30% and its most recent dividend was $3.05. The company's dividends have been growing at 2.65% annually and they are expected to continue growing at that same rate. The price of Qualtric, Inc. stock is now trading for $45.25 per share and there are currently 140,000 shares outstanding. What is the current WACC for Qualtric, Inc.?
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