Assignment Problem: You are given the following information concerning Parrothead Enterprises:
Debt: 10,000 6.9 percent coupon bonds outstanding, with 15 years to maturity and a quoted price of 104. These bonds pay interest semiannually.
Common stock: 275,000 shares of common stock selling for $68.50 per share. The stock has a beta of .85 and will pay a dividend of $3.25 next year. The dividend is expected to grow by 5 percent per year indefinitely.
Preferred stock: 8,000 shares of 4.9 percent preferred stock selling at $94 per share.
Market: 12 percent expected return, risk-free rate of 3.5 percent, and a 35 percent tax rate.
Required: Calculate the WACC for Parrothead Enterprises.
Are you too pursuing your degree program in this field and need a skilled and talented tutor to precisely complete your academic tasks, as allocated by the university professors? Then WACC Assignment Help service is the best place to get resolved from all your academic problems.
Tags: WACC Assignment Help, WACC Homework Help, WACC Coursework, WACC Solved Assignments