Marie Corp. has $1,873 in debt outstanding and $2,832 in common stock (and no preferred stock)....
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Marie Corp. has $1,873 in debt outstanding and $2,832 in common stock (and no preferred stock). Its marginal tax rate is 30%. Marie's bonds have a YTM of 4.4%. The current stock price (Po) is $46. Next year's dividend is expected to be $2.44, and it is expected to grow at a constant rate of 4% per year forever. The company's W.A.C.C. is %. Marie Corp. has $1,873 in debt outstanding and $2,832 in common stock (and no preferred stock). Its marginal tax rate is 30%. Marie's bonds have a YTM of 4.4%. The current stock price (Po) is $46. Next year's dividend is expected to be $2.44, and it is expected to grow at a constant rate of 4% per year forever. The company's W.A.C.C. is %.
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Answer rating: 100% (QA)
To calculate Marie Corps Weighted Average Cost of Capital WACC we need to consider the cost of both ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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