You just paid out the $4 dividend and it is expected to grow at 5% annually,...
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You just paid out the $4 dividend and it is expected to grow at 5% annually, and your stock price is $24 with 5 million outstanding shares. You also issued a bond that has ten years left to maturity with annual coupon rate of 6%. The face value of the bond is $7 million, and the bond is quoted at 98.45. If the tax rate is 33%, what is the weighted average cost of capital of your company? You just paid out the $4 dividend and it is expected to grow at 5% annually, and your stock price is $24 with 5 million outstanding shares. You also issued a bond that has ten years left to maturity with annual coupon rate of 6%. The face value of the bond is $7 million, and the bond is quoted at 98.45. If the tax rate is 33%, what is the weighted average cost of capital of your company?
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Weighted Average Cost of Capital WACC EV Re DV Rd 1 Tax rate E Eq... View the full answer
Related Book For
Financial Management Theory and Practice
ISBN: 978-1305632295
15th edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
Posted Date:
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