Question
A company has determined that its optimal capital structure consists of 40 percent debt and 60 percent equity. Given the following information, calculate the firm's
A company has determined that its optimal capital structure consists of 40 percent debt and 60 percent equity. Given the following information, calculate the firm's weighted average cost of capital. Cost of Debt = 6.8%, Tax rate = 40%, Current Stock Price = $25.11, Long Run Growth rate = 7.7%, Next Year's Dividend = $1.92.
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Numerical Techniques In Finance
Authors: Simon Benninga
1st Edition
0262022869, 978-0262022866
