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You are given the following information on Parrothead Enterprises: Debt: 9 , 0 0 0 7 . 1 percent coupon bonds outstanding, with 2 4
You are given the following information on Parrothead Enterprises:
Debt: percent coupon bonds outstanding, with years to maturity and a quoted price of These bonds pay interest semiannually and have a par value of $
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. The par value is $ per share.
Market: percent expected return, riskfree rate of percent, and a percent tax rate.
Calculate the company's WACC.
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