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Walmart Inc has 6.7 million common shares outstanding, which sell for $21 per share. Walmart management expects to set the next annual dividend at $2.35

image text in transcribed Walmart Inc has 6.7 million common shares outstanding, which sell for $21 per share. Walmart management expects to set the next annual dividend at $2.35 per share, and investors and analysts expect all future dividends to grow indefinitely by 7.5% per year. The current risk-free rate is 4.87%, the expected return on the market is 12.5%, and the stock has a beta of 2.1 . Swiftel also has 285,00015 -year, 10% annual coupon bonds outstanding, currently selling for 112 percent of par. If Swiftel is in the 25% tax bracket and expects to be able to take full advantage of any interest tax shields, what is the firm's WACC

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