B6. (Finding The WACC) The information given here has been gathered about O'ryan Swim-Where, Ltd. Based on this information, estimate O'ryan's WACC.
Current market value of common shares (10 million outstanding) $23.63/share
Next year's expected cash dividend $1.92/share
Expected constant annual dividend growth rate 8%
Current market value of bonds (100,000 bonds outstanding, 8.5% coupon, maturing in 21 years) $835.00/bond
Corporate tax rate 34%
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