Question: What is the formula to answer this question? Question 3 (1.5 points) (Number has been changed) Patton Paints Corporation has a target capital structure of

What is the formula to answer this question?

Question 3 (1.5 points) (Number has been changed) Patton Paints Corporation has a target capital structure of 60% debt and 40% common equity, with no preferred stock. Its before-tax cost of debt is 12%, and its marginal tax rate is 40%. The current stock price is P = $22.50. The last dividend was Do = $2.00, and it is expected to grow at a 7% constant rate. What is its WACC? A) 10.92% O B) 11.28% O C) 11.68% O D) 10.68% O E) 10.38%

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