Question: can this be done by hand please? 8. CALCULATING WACC You are given the following information concerning Parrothead Enterprises: Debt: 4,000 8 percent coupon bonds

can this be done by hand please? can this be done by hand please? 8. CALCULATING WACC You are

8. CALCULATING WACC You are given the following information concerning Parrothead Enterprises: Debt: 4,000 8 percent coupon bonds outstanding, with 20 years to maturity, and a quoted price of 114 (114% of face value). These bonds pay interest semiannually. Common stock: 150,000 shares of common stock selling for $50 per share. The stock has a beta of 1.05 and will pay a dividend of $3.25 next year. The dividend is expected to grow by 5 percent per year indefinitely. Preferred stock: 8,000 shares of 5.2 percent of $100 par preferred stock, selling at $96 per share. Market: a 12 percent expected return, a 4.5 percent risk-free rate, and a 35 percent tax rate. Calculate the WACC for Parrothead Enterprises

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