Hayward Corporation has debt/assets ratio of .4, its cost of debt is 9% and that of equity

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Hayward Corporation has debt/assets ratio of .4, its cost of debt is 9% and that of equity 13%. The tax rate of Hayward is 30%. The company is not growing, has a dividend payout ratio of 100%, and its dividend per share is $2. Hayward has 2 million shares of common stock. Find the total value of Hayward, and its WACC.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Cost Of Debt
The cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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