Thames Health System has a target capital structure of 30 percent debt and 70 percent equity.  The system's CFO has obtained the following information: (1) the before-tax yield to maturity on the system's bonds is 5 percent, (2) the system's common stock is expected to pay a $3.00 dividend at year end (D1=$3.00), (3) the dividend is expected to grow at a constant rate of 3 percent a year, and (4) The common stock currently sells for $60 a share. The system's tax rate is 30 percent. What is the system's CCC?    

Answer rating: 100% (QA)

To calculate the Weighted Average Cost of Capital WACC for Thames Health System we need ... View the full answer