You are given the following information concerning Parrothead Enterprises: Debt: 13,000 6.2 percent coupon bonds outstanding, with 15 years to maturity and a quoted price of 107. These bonds pay interest semiannually. Common stock: 345,000 shares of common stock selling for $73.50 per share. The stock has a beta of 90 and will pay a dividend of $3.35 next year. The dividend is expected to grow by 5 percent per year indefinitely. Preferred stock: 10,000 shares of 4.1 percent preferred stock selling at $86 per share. Market: 12 percent expected return, risk-free rate of 3.5 percent, and a 35 percent tax rate.
Calculate the WACC for Parrothead Enterprises.

6. why the aggregate supply curve slopes upward in the short run in the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. several theories explain how this might happen. for example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. consider a soybean farmer who expects a price level of 100 in the coming year. if the actual price level turns out to be 90, soybean prices will , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by the quantity of soybeans supplied. if other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to the natural level of output in the short run.