Compay x has an expected net profit of $ $420\mathrm{.}000.$

$50\%$ of the profit wil be distinguished to the shareholders. This firm may take debt with a $8$ percent of interest up to $168,000$ when exceeds this amount this rate will rise up to $10\%$ tax rate is $40\%$ price of this firm stock per share is $42\mathrm{.}4$ last dividends paid was $2$ dollar per share expected growth is $6\%$ flotation cost is $20\%$ of the price what is the cost of capital?

Answer rating: 100% (QA)

To calculate the cost of capital for Company X we need to consider the weighted average cost of capi... View the full answer