Fake Company Chi's capital structure consists of 35% long-term debt and 65% common equity. A relatively small company, its long-term debt consists of a commercial bank loan with a 5.0% interest rate. The company's common stock is currently priced at $87.46 and carries a dividend growing at a constant rate of 2.5%. The most recent dividend paid was $2.80. Taxes are determined based on a 32.0% tax rate. 

What is an estimate of this company's weighted average cost of capital?

Answer rating: 100% (QA)

solution Heres how to estimate Fake Company Chis weighted average cost of capital WACC 1 Cal... View the full answer