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What is their WACC

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Question - Caspian Sea Drinks' is financed with 62.00% equity and the remainder in debt. They have 10.00-year, semi-annual pay, 5.95% coupon bonds which sell for 98.37% of par. Their stock currently has a market value of $25.15 and Mr. Bensen believes the market estimates that dividends will grow at 3.14% forever. Next year's dividend is projected to be $2.57. Assuming a marginal tax rate of 33.00%, what is their WACC (weighted average cost of capital)? Please show all work.

Reference no: EM132788079

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