B Corp. is expected to pay a $2.45 dividend at year-end, the dividend is expected to grow at a constant rate of 4,50% a year, and the common stock currently sells for $35 a share. The before-tax cost of debt is 5.5% and the tax rate is 40%. The target capital structure consists of 40% debt and 60% common equity. What is the company's WACC? Do not round your intermediate calculations.

Answer rating: 100% (QA)

To calculate the Weighted Average Cost of Capital WACC we need to consider the cost of both debt and ... View the full answer