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Caspian Sea Drinks' is financed with 61.00% equity and the remainder in debt. They have 11.00-year,...

Caspian Sea Drinks' is financed with 61.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.40% coupon bonds which sell for 97.00% of par. Their stock currently has a market value of $25.46 and Mr. Bensen believes the market estimates that dividends will grow at 3.51% forever. Next year’s dividend is projected to be $2.95. Assuming a marginal tax rate of 28.00%, what is their WACC (weighted average cost of capital)?

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