Sondheim Systems Inc. is expected to pay a $3.880 dividend at year-end (Dividend 1 = $2.50), the
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Sondheim Systems Inc. is expected to pay a $3.880 dividend at year-end (Dividend 1 = $2.50), the dividend is expected to grow at a constant rate of 6.00% a year, and the common stock currently sells for $40.00 a share.The before-tax cost of debt is 7.50%, and the tax rate is 20%.The target capital structure consists of 65% debt and 35% common equity.What is the company's WACC?
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
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