3. Please see below for Two-Two Corporation's information. • Debt: 9,700 7.2 percent coupon bonds outstanding, with 23 years to maturity and a quoted price of 105.75. These bonds have a par value of $1,000 and pay interest semiannually. • Common stock: 260,000 shares of common stock selling for $65.20 per share. The stock has a • beta of .97 and will pay a dividend of $3.40 next year. The dividend is expected to grow by 5.2 percent per year indefinitely. Preferred stock: 8,700 shares of 4.60 percent preferred stock selling at $94.70 per share. ⚫ Market: 11.3 percent expected return, a risk-free rate of 3.95 percent, and a 22 percent tax rate. What is the company's WACC?
3. Please see below for Two-Two Corporation's information. • Debt: 9,700 7.2 percent coupon bonds outstanding, with 23 years to maturity and a quoted price of 105.75. These bonds have a par value of $1,000 and pay interest semiannually. • Common stock: 260,000 shares of common stock selling for $65.20 per share. The stock has a • beta of .97 and will pay a dividend of $3.40 next year. The dividend is expected to grow by 5.2 percent per year indefinitely. Preferred stock: 8,700 shares of 4.60 percent preferred stock selling at $94.70 per share. ⚫ Market: 11.3 percent expected return, a risk-free rate of 3.95 percent, and a 22 percent tax rate. What is the company's WACC?
Human Anatomy & Physiology (11th Edition)
11th Edition
ISBN:9780134580999
Author:Elaine N. Marieb, Katja N. Hoehn
Publisher:Elaine N. Marieb, Katja N. Hoehn
Chapter1: The Human Body: An Orientation
Section: Chapter Questions
Problem 1RQ: The correct sequence of levels forming the structural hierarchy is A. (a) organ, organ system,...
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Transcribed Image Text:3. Please see below for Two-Two Corporation's information.
• Debt: 9,700 7.2 percent coupon bonds outstanding, with 23 years to maturity and a quoted price
of 105.75. These bonds have a par value of $1,000 and pay interest semiannually.
• Common stock: 260,000 shares of common stock selling for $65.20 per share. The stock has a
•
beta of .97 and will pay a dividend of $3.40 next year. The dividend is expected to grow by 5.2
percent per year indefinitely.
Preferred stock: 8,700 shares of 4.60 percent preferred stock selling at $94.70 per share.
⚫ Market: 11.3 percent expected return, a risk-free rate of 3.95 percent, and a 22 percent tax rate.
What is the company's WACC?
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