. Johnson Industries finances its projects with 4 0 % debt and 1 0 % preferred stock...
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Question:
Johnson Industries finances its projects with debt and preferred stock and common stock.
The company issues bonds at a yield of to maturity of
The cost of preferred stock is
The companys common stock sells for $ a share
The companys dividend is currently $ a share and is expected to grow at a constant rate of per year.
Assume flotation costs are zero and no new stock is issued.
The companys tax rate is
Calculate the weighted average cost of capital.
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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