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Easy Car Corp. is a grocery store located in the Southwest. It paid an annual dividend...

Easy Car Corp. is a grocery store located in the Southwest. It paid an annual dividend of ​$4.00 last year to its shareholders and plans to increase the dividend annually at the rate of 4.0​%. It currently has 2,000,000 common shares outstanding. The shares currently sell for ​$10 each. Five years ago, Easy Car Corp. issued 10,000 semiannual 21-year bonds with a coupon rate of 9​% and a par value of ​$1,000. The bonds currently have a yield to maturity​ (YTM) of 14%. What is the weighted average cost of capital (WACC) for Easy Car Corp. if the corporate tax rate is 30%?

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jeff jeffy answered 1 year ago
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