Kruger Industrial Smoothing has the following: $100,000 face value 5% bonds paid semiannually that currently trade at

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Kruger Industrial Smoothing has the following:

$100,000 face value 5% bonds paid semiannually that currently trade at 1.05 with 6 years to maturity

1,000 preferred shares with a $25 par value, a $2.00 annual dividend paid quarterly and a current market value of $26 per share

5,000 common shares currently trading at $20 per share that pay a $2.50 annual dividend.

The firm has a 30% tax rate and an expected growth rate in common share dividends of 5% annually

What is the WACC for Kruger?

Related Book For answer-question

Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart

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Posted Date: Apr 15, 2024 07:21 AM

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Kruger Industrial Smoothing has the following: $100,000 face value 5% bonds paid semiannually that currently trade at

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Introduction to Corporate Finance What Companies Do

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