Comida corp is a grocery store located in the midwest it, Ask an Expert

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Comida corp. is a grocery store located in the midwest. It paid an annual dividend of $2.00 last year to its shareholders and plans to increase the dividend annually at 4.0% forever. It has 600,000 shares outstanding. The shares currently sell for $21.25 per share. Comida Corp. has 15,000 semiannual bonds outstanding with a coupon rate of 7%, a maturity of 16 years, and a par value of $1,000. The bonds currently have a yield to maturity? (YTM) of 7% per bond.

What is the adjusted WACC for Comida Corp. if the corporate tax rate is 20%? (please round to two decimal places)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92863606

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