What is robinson inn wacc

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The capital structure of Robinson Inn is current at 60% of equity (i.e., 40% of the debt). You find the debt issued by Robinson Inn has a pretax interest rate of 12%. You also find Robinson Inn issues its common stocks at $15.00 per share, with the current dividend of $1.00. You expect future dividends of Robinson Inn to grow by 4%.

Question: What is Robinson Inn's WACC if it pays taxes at 21%?

Reference no: EM132477754

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