Shares of common stock in issue at a market price

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Lagoon Boat Sales has 300,000 shares of common stock in issue at a market price of $44 per share. Last month, the company paid an annual dividend of $1.00 per share. Last month, the company paid an annual dividend of $1.00 per share. The dividend growth rate is 3.5%. Lagoon also has 5,000 bonds outstanding. These have a 9.5% coupon rate and pay interest annually and mature in 7.5 years. The bonds are selling at 102% of face value. The company's tax rate is 34%. What is the WACC?

Reference no: EM131528593

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