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Business, 22.05.2020 17:58 pricilaxo9523

You are given the following information concerning Parrothead Enterprises: Debt: 13,000 6.2 percent coupon bonds outstanding, with 15 years to maturity and a quoted price of 107. These bonds pay interest semiannually. Common stock: 345,000 shares of common stock selling for $73.50 per share. The stock has a beta of 90 and will pay a dividend of $3.35 next year. The dividend is expected to grow by 5 percent per year indefinitely. Preferred stock: 10,000 shares of 4.1 percent preferred stock selling at $86 per share. Market: 12 percent expected return, risk-free rate of 3.5 percent, and a 35 percent tax rate.
Calculate the WACC for Parrothead Enterprises.

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You are given the following information concerning Parrothead Enterprises: Debt: 13,000 6.2 percent...
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