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EEECorp. is a grocery store located in the Northeast. It paid anannual dividend of $10.00 last year to its shareholders and plansto increase the dividend annually at the rate of 4.0% forever. Itcurrently has 600,000 common shares outstanding. The sharescurrently sell for $100 each. EEE Corp. also has 50,000 semiannualbonds outstanding with a coupon rate of 9.7677 %, a maturity of30years, and a par value of $1,000. The bonds currently have ayield to maturity (YTM) of 8%. The corporate tax rate is 20%?what is cost if debit?how many interest payments are left for the bomd of EEEcorp?what is the interest payments per period for the bond?what is the discount rate per period to use in pricingbonds?what is the market value of equity for the calculation of thewacc for EEE?what is the cost of equity for EEE?what is the market value of debt to be used in the calculationof the WACC for EEE?what is the value of d/v?what is weighted average cost of capita (Wacc) got EEEcorp.?
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