The bonds currently have yield to maturity

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Comida corp. is a grocery store located in the midwest. It paid an annual dividend of $3 last year to its shareholders and plans to increase the dividend annually at 4% . It has 600,000 shares outstanding. The shares currently sell for $16.50 per share. Comida Corp. has 20,000 semiannual bonds outstanding with a coupon rate of 8?%, a maturity of 15 years, and a par value of $1,000

The bonds currently have a yield to maturity? (YTM) of 8?% per bond. What is the adjusted WACC for Comida Corp. if the corporate tax rate is 20%?

Reference no: EM131544104

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