Patton Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its before-tax cost of debt is 8%, and its marginal tax rate is 40%. The current stock price is Po = $30. The last dividend was Do = $2.4 and It is expected to grow at a 7% constant rate. 

What is its weighted average cost of capital (WACC) without issuing new common stock?

Answer rating: 100% (QA)

To calculate the weighted average cost of capital WACC without issuing new common stock we need to c... View the full answer