Trumpet Corporation has a capital structure consisting of 30 percent debt and 70 percent common equity. Trumpet's financial managers believe these capital ratios represent the company's target capital structure. If Trumpet were to issue new debt, he expects it to yield 8 percent. Trumpet's stock is currently trading at $30 per share, the current dividend is $1 per share, and Trumpet's financial managers believe this dividend will grow at a rate of 3 percent per year. calculate If Trumpet's weighted average cost of capital.

Answer rating: 100% (QA)

To calculate Trumpet Corporations weighted average cost of capital WACC we ne... View the full answer