In: Finance
Caspian Sea Drinks' is financed with 65.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.55% coupon bonds which sell for 98.92% of par. Their stock currently has a market value of $24.82 and Mr. Bensen believes the market estimates that dividends will grow at 3.33% forever. Next year’s dividend is projected to be $2.50. Assuming a marginal tax rate of 35.00%, what is their WACC (weighted average cost of capital)
4 Decimal place answer please.