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Business, 11.03.2020 23:03 weisenbergertay5779

G Nordstrom's current share price is $25 and it is expected to pay a $1.50 dividend per share next year. After that, Nordstrom's dividends are expected to grow at a rate of 4.5% per year. Also, the rm just issued new debt with a debt beta of 0.1. Assume the risk-free rate of return is 2%, the market risk premium is 6%, and that Nordstrom faces a 21% tax 1 rate. If the market value of its equity is $100 million, and the market value of its debt is $20 million, what is the WACC for Nordstrom

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