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You are given the following information concerning Parrothead Enterprises: Debt 9 , 1 0 0 7 . 2 percent coupon bonds outstanding, with 2 3
You are given the following information concerning Parrothead Enterprises:
Debt percent coupon bonds outstanding, with years to maturity and a quoted price of These bonds have a par value of $ and pay interest semiannually.
Common stock: shares of common stock selling for $ per share. The stock has a beta of and will pay a dividend of $ next year. The dividend is expected to grow by percent per year indefinitely.
Preferred stock: shares of percent preferred stock selling at $ per share.
Market: percent expected return, a riskfree rate of percent, and a percent tax rate.
What is the firm's cost of each form of financing?
Note: Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
Calculate the WACC for the company.
Note: Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
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