Company A's information is as follows: Stock price 35 baht Number of shares 200 million shares...

  

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Company A's information is as follows: Stock price 35 baht Number of shares 200 million shares The amount of interest-bearing debt of the company is 3,400 million baht. Amount of total liabilities (total liabilities) 4,600 million baht Equity (total equity) 3,300 million baht Beta of company stock 1.60 20% corporate income tax rate 3.5% annual bond yield The stock market average yield exceeds bond yields by 6.0% per year. The yield spread for companies with the same credit rating as Company A is 2.5% per year. Find the company's cost of capital (WACC) Answer...........% per year Company A information is as follows: Average shareholder equity 160 million baht The net profit of the company is 20 million baht. The company pays dividends, according to the dividend payment policy at a fixed rate to the amount of 12 million baht The company has a policy to raise funds to keep the debt to equity ratio constant and the company has a policy to expand its business from Retained earnings and additional borrowing What percentage of net profit growth should a company have?.................% per year Company A's information is as follows: Stock price 35 baht Number of shares 200 million shares The amount of interest-bearing debt of the company is 3,400 million baht. Amount of total liabilities (total liabilities) 4,600 million baht Equity (total equity) 3,300 million baht Beta of company stock 1.60 20% corporate income tax rate 3.5% annual bond yield The stock market average yield exceeds bond yields by 6.0% per year. The yield spread for companies with the same credit rating as Company A is 2.5% per year. Find the company's cost of capital (WACC) Answer...........% per year Company A information is as follows: Average shareholder equity 160 million baht The net profit of the company is 20 million baht. The company pays dividends, according to the dividend payment policy at a fixed rate to the amount of 12 million baht The company has a policy to raise funds to keep the debt to equity ratio constant and the company has a policy to expand its business from Retained earnings and additional borrowing What percentage of net profit growth should a company have?.................% per year

Answer rating: 100% (QA)

SOLUTION To calculate the Weighted Average Cost of Capital WACC for Company A you will need to consider the cost of equity and the cost of debt Heres ... View the full answer