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# You are given the following information concerning Parrothead Enterprises: Debt: 9,400 6.6 percent coupon

bonds outstanding, with 21 years to maturity and a quoted price of 105.00. These bonds pay interest semiannually. Common stock: 245,000 shares of common stock selling for \$64.90 per share. The stock has a beta of 0.89 and will pay a dividend of \$3.10 next year. The dividend is expected to grow by 5.4 percent per year indefinitely. Preferred stock: 8,400 shares of 4.70 percent preferred stock selling at \$94.4 per share. Market: A 11.6 percent expected return, a 5.4 percent risk-free rate, and a 40 percent tax rate. Required: Calculate the WACC for Parrothead Enterprises. (Do not include the percent sign (\$). Round your answer to 2 decimal places (e.g., 32.16).) WACC % __________________

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