COST OF COMMON EQUITY AND WACC Patton Paints Corporation has a target capital structure of 40% debt
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COST OF COMMON EQUITY AND WACC Patton Paints Corporation has a target capital structure of 40% debt and 60% 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 P0 22 50. The last dividend was D0 2 00, and it is expected to grow at a 7% constant rate. What is its cost of common equity and its WACC?
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Related Book For 
Fundamentals Of Financial Management Concise Edition
ISBN: 9781285065137
8th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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