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Business, 25.06.2021 04:10 joebossmc2184

You are given the following information concerning Around Town Tours:Debt: 7,500, 6.8 percent coupon bonds outstanding, with 11 years to maturity and a quoted price of 97.9. These bonds pay interest semiannually. Common stock: 284,000 shares of common stock selling for $68 per share. The stock has a beta of 1.04 and will pay a dividend of $2.62 next year. The dividend is expected to grow by 2.5 percent per year indefinitely. Preferred stock: 9,000 shares of $8 preferred stock selling at $88 per share. Market: 14.6 percent expected return, 4.1 percent risk-free rate Company: 34 percent tax rate. Calculate the WACC for this firm.

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