Question
A company has 400,000 shares of common stock, with a book value of $42/share and a market value of $58/share.Annual dividends are $4.00/share, and annual
A company has 400,000 shares of common stock, with a book value of $42/share and a market value of $58/share.Annual dividends are $4.00/share, and annual earnings are $11.00/share.The company is in the 21% marginal tax bracket.Estimate the annual after-tax cost of capital for equity (common stock) funds for this company.Express the answer to three significant digits or more.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
