Each share of Boone Corp has a beta of .90Each share sells for $25.00/share.The market risk premium is 7% and teh risk free rate is 8%.Boone's last dividend was $1.80/share, and the dividend is expected to grow at a rate of 7% indefinitely.Boone has a target debt/equity ratio of 50%. Boone has a cost of debt is 8%. Boone has a tax rate of 40%.

What is the WACC?

 

Answer rating: 100% (QA)

To calculate the weighted average cost of capital WACC for Boone Corp we need to calculate the cos... View the full answer