Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Caspian Sea Drinks' is financed with 66.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.72% coupon bonds which sell for 97.60% of par. Their stock currently has a market value of $25.43 and Mr. Bensen believes the market estimates that dividends will grow at 3.59% forever. Next year’s dividend is projected to be $2.49. Assuming a marginal tax rate of 35.00%, what is their WACC (weighted average cost of capital)?

 

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))

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