Kraft Heinz stock sells for $40.95 per share. It has 1.22 billion shares outstanding. It has bonds outstanding with a face value of $28 billion. The bonds have a coupon of 6.5% and a yield to maturity of 4%. They mature in 10 years. Kraft is expected to pay a dividend of $1.60 this year. The expected growth rate of 6%. Its tax rate is 27%. Compute weighted average cost of capital for Kraft.

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Kraft Heinz stock sells for $40.95 per share. It has 1.22 billion shares outstanding. It has bonds outstanding with a face value of $28 billion. The bonds have a coupon of 6.5% and a yield to maturity of 4%. They mature in 10 years. Kraft is expected to pay a dividend of $1.60 this year. The expected growth rate of 6%. Its tax rate is 27%.

Compute weighted average cost of capital for Kraft.

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