Assuming that NCC Bank has 30% debt, 10% PR Stock, and 60% equity in its current capital

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Assuming that NCC Bank has 30% debt, 10% PR Stock, and 60% equity in its current capital structure. The bank's marginal tax is 40%. YTM on outstanding bond is 12%. PR Stock pays dividend of $20 and selling at $175. Common share dividend is $5 for next year and expected growth is 6%. Current market price of common stock is $30, beta 1.6, expected return 18% and risk free 10%. What is NCC Bank's WACC?

Posted Date: May 18, 2024 07:08 PM

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Assuming that NCC Bank has 30% debt, 10% PR Stock, and 60% equity in its current capital

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