Adjusted WACC. Hollydale's is a clothing store in East Park. It paid an annual dividend of $2.60 last year to its shareholders and plans to increase the dividend annually at 5.0%. It has 480,000 shares outstanding. The shares currently sell for $23.83 per share. Hollydale's has 13,000 semiannual bonds outstanding with a coupon rate of 11.5%, a maturity of 22 years, and a par value of $1,000. The bonds are currently selling for $1,132.47 per bond. What is the adjusted WACC for Hollydale's if the corporate tax rate is 40%?
What is the adjusted WACC for Hollydale's if the corporate tax rate is 40%? (round to two decimal places)
Please show all work! (no financial calculator/excel unless work and steps are clearly shown)