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a company has 225,000 shares of common stock outstanding at a market price of $37 a share. Next years annual dividend is expected to be
a company has 225,000 shares of common stock outstanding at a market price of $37 a share. Next years annual dividend is expected to be $2.15 a share and the dividend growth rate is 2.75%. The firm also has 15,000 bonds outstanding with a face value of $1,000 per bond. The bonds have yield to maturity of 6.75% and sell at 103% of face value. The companys tax rate is 32%. What is the firms weighted average cost of capital?
please answer in easy to understand steps & WACC equation breakdown, thank you.
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