You are given the following information concerning Parrothead Enterprises: Debt: 10,100 7.1 percent coupon bonds outstanding,…

You are given the following information concerning Parrothead
Enterprises: Debt: 10,100 7.1 percent coupon bonds outstanding,
with 24 years to maturity and a quoted price of 106.75. These bonds
pay interest semiannually. Common stock: 280,000 shares of common
stock selling for $65.60 per share. The stock has a beta of .96 and
will pay a dividend of $3.80 next year. The dividend is expected to
grow by 5.1 percent per year indefinitely. Preferred stock: 9,100
shares of 4.55 percent preferred stock selling at $95.10 per share.
Market: An expected return of 10.9 percent, a risk-free rate of
5.05 percent, and a 34 percent tax rate. Calculate the WACC for
Parrothead Enterprises. (Do not round intermediate calculations and
enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)

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WACC %