TheCFO of GHWS is calculating the WACC of the company. She collects the following facts: The company's
Fantastic news! We've Found the answer you've been seeking!
Question:
TheCFO of GHWS is calculating the WACC of the company. She collects the following facts:
- The company's long-term bonds currently offer a yield to maturity of8%.
- The company's stock price is$30.3.
- $30.3per share and recently paid a dividend of$2 which is expected to grow at a constant rate of6% per year.
- The company preference shares currently trade at$41.8 per share and pay a preference dividend of10% on a par value of$50.
- The company's capital structure is65% common equity,10% preference shares, and25% debt.
- The company's tax rate is40%.
What is the company's WACC?
Posted Date: