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Caspian Sea Drinks' is financed with 65.00% equity and the remainder in debt. They have...

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Finance

Caspian Sea Drinks' is financed with 65.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.56% coupon bonds which sell for 97.28% of par. Their stock currently has a market value of $25.60 and Mr. Bensen believes the market estimates that dividends will grow at 3.95% forever. Next years dividend is projected to be $2.53. Assuming a marginal tax rate of 28.00%, what is their WACC (weighted average cost of capital)?

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