Calculate the company’s WACC based on the following information:

Equity:

$3 per share of dividend payment in next year; annual dividend payment; steady dividend growth rate of 3% per year; $30 per share; 200 million shares outstanding

Debt:

3 billion debt; interest expense of 240 million

Preferred stock:

$500 per share; 2 million shares outstanding; dividend of $25 per payment; Semiannual dividend payment

Average corporate tax rate of 25%

Answer rating: 100% (QA)

To calculate the Weighted Average Cost of Capital WACC we need to determine the cost of equity cost ... View the full answer