Question: the correct answer is 8.65% please show all steps on how to get to that answer Caspian Sea Drinks' is financed with 62.00% equity and

the correct answer is 8.65% please show all steps on how

the correct answer is 8.65% please show all steps on how to get to that answer

Caspian Sea Drinks' is financed with 62.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.27% coupon bonds which sell for 98.87% of par. Their stock currently has a market value of $25.31 and Mr. Bensen believes the market estimates that dividends will grow at 3.18% forever. Next year's dividend is projected to be $2.13. Assuming a marginal tax rate of 29.00%, what is their WACC (weighted average cost of capital)? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) answered incorrect Correct Answer: 8.65% Points: 0 Mave Details

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