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9,400 6.6 percent coupon bonds outstanding, with 21 years to maturity and a quot

ID: 2647042 • Letter: 9

Question

9,400 6.6 percent coupon bonds outstanding, with 21 years to maturity and a quoted price of 105.00. These bonds pay interest semiannually.

245,000 shares of common stock selling for $64.90 per share. The stock has a beta of 0.89 and will pay a dividend of $3.10 next year. The dividend is expected to grow by 5.4 percent per year indefinitely.

Calculate the WACC for Parrothead Enterprises. (Do not include the percent sign ($). Round your answer to 2 decimal places (e.g., 32.16).)

I WILL ONLY GIVE POINTS TO THOSE WHO USE MY NUMBERS.

You are given the following information concerning Parrothead Enterprises:

Explanation / Answer

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