Caspian Sea Drinks' is financed with 63.00% equity and the remainder in debt. They have 11.00-year, semi-annual
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Caspian Sea Drinks' is financed with 63.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.81% coupon bonds which sell for 98.48% of par. Their stock currently has a market value of $25.78 and Mr. Bensen believes the market estimates that dividends will grow at 3.19% forever. Next year’s dividend is projected to be $2.12. Assuming a marginal tax rate of 21.00%, what is their WACC (weighted average cost of capital)?
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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