Question
A company is financed with $2 million debt and $3 million equity. The stock recently paid a dividend of $3 that will grow at a
A company is financed with $2 million debt and $3 million equity. The stock recently paid a dividend of $3 that will grow at a constant rate of 5% and the YTM of the debt us 6%. If the price for the stock is $40 and the corporate tax rate is 21%, what is the company's weighted average cost of capital?
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee
6th Edition
1599180219, 978-0139043437
