Question: The information given here has been gathered about Oryan Swim- Where, Ltd. Based on this information, estimate Oryans WACC. Current market value of common shares

The information given here has been gathered about O’ryan Swim- Where, Ltd.

Based on this information, estimate O’ryan’s WACC.

Current market value of common shares (10 million outstanding) $23.63/share

Next year’s expected cash dividend $1.92/share

Expected constant annual dividend growth rate 8%

Current market value of bonds

(100,000 bonds outstanding, 8.5% coupon, maturing in 21 years) $835.00/bond Corporate tax rate 34%


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