Question: R . S . Green has 2 5 0 , 0 0 0 shares of common stock outstanding at a market price of $ 2
RS Green has shares of common stock outstanding at a market price of $ a share. Next year's annual dividend is expected to be $ a share. The dividend growth rate is percent. The firm also has bonds outstanding with a face value of $ per bond. The bonds carry a percent coupon, pay interest semiannually, and mature in years. The bonds are selling at percent of face value. The company's tax rate is percent. What is the firm's weighted average cost of capital?
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