Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. marie corp. has $1,303 in debt outstanding and $2,

Marie Corp. has $1,303 in debt outstanding and $2,335 in common stock (and no preferred...

80.2K

Verified Solution

Question

Finance

Marie Corp. has $1,303 in debt outstanding and $2,335 in common stock (and no preferred stock). Its marginal tax rate is 30%. Marie's bonds have a YTM of 4%. The current stock price (Po) is $46. Next year's dividend is expected to be $2.7, and it is expected to grow at a constant rate of 5% per year forever. The company's W.A.C.C. is ____%. Round your final answer to 2 decimal places (example: enter 12.34 for 12.34%), but do not round any intermediate work in the process. [Note: Correct answer feedback may show more than 2 decimal places, but you should still follow instructions above for entering your answers.] Margin of error for correct responses: +/- .05.

please show how to solve using financial calculator

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students