Ma, Inc. has a market value capital structure of 30% debt and 70% equity. The tax rate
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Ma, Inc. has a market value capital structure of 30% debt and 70% equity. The tax rate is 40%. The firm's bonds currently trade in the market for $1035.00. These bonds have a face value of $1,000, coupon rate of 8% paid semiannually, and 10 years remaining to maturity. The firm's common stock trades for $20 per share. The firm has just paid a dividend of $2. Future dividends are expected to grow at 2% per year. Based on this information, Ma, Inc.'s WACC is _____%.
Related Book For
Contemporary Financial Management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
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