Easy Car Corp. is a grocery store located in the Southwest. It plans to pay an annual dividend of $3.00 next year to it
Posted: Wed Jul 06, 2022 6:45 pm
Easy Car Corp. is a grocery store located in the Southwest. Itplans to pay an annual dividend of $3.00 next year to itsshareholders and plans to increase the dividend annually at therate of 2.0%. It currently has 1,000,000 common sharesoutstanding. The shares currently sell for $16 each. Easy CarCorp. also has 30,000 semiannual bonds outstanding with a couponrate of 9%, a maturity of 22 years, and a par value of $1,000.The bonds currently have a yield to maturity (YTM) of 14%. What isthe weighted average cost of capital (WACC) for Easy Car Corp. ifthe corporate tax rate is 30%?