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Business, 05.05.2020 16:43 kmassarotti

You are given the following information concerning Parrothead EnterprisesDebt: 8,600 7.2 percent coupon bonds outstanding, with 23 years to maturity and a quoted price of 107. These bonds pay interest semiannually and have a par value of $2,000. Common stock: 285,000 shares of common stock selling for $65.70 per share. The stock has a beta of 1.02 and will pay a dividend of $3.90 next year. The dividend is expected to grow by 5.2 percent per year indefinitely. Preferred stock: 9,200 shares of 4.6 percent preferred stock selling at $95.20 per share. The par value is $100 per share. Market: 10.8 percent expected return, risk-free rate of 4.2 percent, and a 22 percent tax rate. What is the company's WACC?

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You are given the following information concerning Parrothead EnterprisesDebt: 8,600 7.2 percent cou...

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