Calculate the wacc for parrothead enterprises

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Reference no: EM131056508

CALCULATING WACC You are given the following information concerning Parrothead Enterprises: Debt: 4,000 8 percent coupon bonds outstanding, with 20 years to maturity, and a quoted price of 114 (114% of face value). These bonds pay interest semiannually. Common stock: 150,000 shares of common stock selling for $50 per share. The stock has a beta of 1.05 and will pay a dividend of $3.25 next year. The dividend is expected to grow by 5 percent per year indefinitely. Preferred stock: 8,000 shares of 5.2 percent of $100 par preferred stock, selling at $96 per share. Market: a 12 percent expected return, a 4.5 percent risk-free rate, and a 35 percent tax rate. Calculate the WACC for Parrothead Enterprises.

Reference no: EM131056508

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Calculate the wacc for parrothead enterprises : CALCULATING WACC You are given the following information concerning Parrothead Enterprises: Debt: 4,000 8 percent coupon bonds outstanding, with 20 years to maturity, and a quoted price of 114 (114% of face value). Calculate the WACC for Parrothead E..

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