A company has an after tax WACC, weight of average cost of capital, of 11.5%. it has equity capital of 55% and 45% debt capital. the debt cost of capital for the company is 9% while its tax rate is 30%. a dividend of $5 will be paid next year. the current share price of the company is $45. 

What is the growth rate of the company?

Answer rating: 100% (QA)

The growth rate of a company can be calculated using the Gordon Growth Model also known as the Divid... View the full answer