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You want to estimate the WACC for Acromantula Corporation. They have 1,250,000 shares of common stock outstanding, which paid a $2.50 dividend per share

You want to estimate the WACC for Acromantula Corporation. They have 1,250,000 shares of common stock

You want to estimate the WACC for Acromantula Corporation. They have 1,250,000 shares of common stock outstanding, which paid a $2.50 dividend per share last year (you expect this to grow by 4% annually). The firm has a beta of 1.4, the risk-free rate is 1.2 % and the expected market return is 9%. They have no preferred stock. They have $22,000,000 (face value) in debt, with 21 years to maturity, a 7% semiannual coupon, and a current price quote of $1011.29 (per $1000 of face value). Their tax rate is 28%. What is their WACC?

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