#36 Caspian Sea Drinks' is financed with 70.00% equity and the remainder in debt. They have 10.00-year, semi- annual pay, 5.76% coupon bonds which sell for 98.97% of par. Their stock currently has a...

Extracted text: #36 Caspian Sea Drinks' is financed with 70.00% equity and the remainder in debt. They have 10.00-year, semi- annual pay, 5.76% coupon bonds which sell for 98.97% of par. Their stock currently has a market value of $25.49 and Mr. Bensen believes the market estimates that dividends will grow at 3.68% forever. Next year's dividend is projected to be $2.82. Assuming a marginal tax rate of 34.00%, what is their WACC (weighted average cost of capital)? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) unanswered not_submitted Attempts Remaining: Infinity