Business, 07.05.2020 02:06 frankcaroccio0203

Easy Car Corp. is a grocery store located in the Southwest. It plans to pay an annual dividend of $2.00 next year to its shareholders and plans to increase the dividend annually at the rate of 2.0%. It currently has 1,000,000 common shares outstanding. The shares currently sell for $12 each. Easy Car Corp. also has 20,000 semiannual bonds outstanding with a coupon rate of 9%, a maturity of 26 years, and a par value of $1,000. The bonds currently have a yield to maturity (YTM) of 6%. What is the weighted average cost of capital (WACC) for Easy Car Corp. if the corporate tax rate is 30%?

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Easy Car Corp. is a grocery store located in the Southwest. It plans to pay an annual dividend of $2...