adjusted wacc

Adjusted WACC Hollydale's will issue an additional 6,000 bonds with the help of an investment banker. The bonds will be semiannual bonds with a maturity of 26 years. The coupon rate will be 7.5%, and the par value $1,000. These bonds will be sold at $827.71 in the market, but the investment banker will receive a 7% commission on the sold bonds. The original bonds have 11 years to maturity and are semiannual, with a coupon rate of 6% and a price of $823.60. There are 12,000 bonds outstanding from this senior issue. What is the new cost of capital for Hollydale's if the company still has 410,000 shares outstanding selling at $19.17 with an annual dividend growth rate of 2.5% and the last annual dividend of $1.50? The tax rate remains at 25% What is the adjusted WACC for Hollydale's if the corporate tax rate is 25%? [ % (Round to two decimal places.) 1 10 1 01 O of