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White waters is estimating its wacc

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White Waters is estimating its WACC. The company has collected the following information. What is the company's WACC?

  • It has 12 million shares of common stock outstanding that are trading at $80/share.
  • The company has 24-year bonds outstanding with a 7 percent semi-annual coupon that are trading at 105% of par value. The bonds' total par value is $400 million.
  • The company has just paid a dividend of $4.00 per share, and the dividends are expected to grow at 4% consistently. • The company's tax rate is 26 percent.
  • The risk-free rate is 3 percent.

Reference no: EM132504269

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