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A firm maintains a debt-to-equity ratio of 0.55 and has a tax rate of 34%.The company does not issue preferred stock but has a pre-tax
A firm maintains a debt-to-equity ratio of 0.55 and has a tax rate of 34%.The company does not issue preferred stock but has a pre-tax cost of debt of 8.29%.There are 20,000 shares of the company's stock outstanding with a beta of 0.9 and market price of $35.10.Yesterday, the company issued an annual dividend in the amount of $1.21 per share.Dividends are expected to grow at 4.26% indefinitely.What is the company's weighted average cost of capital?
6.48%
6.66%
6.83%
7.01%
7.18%
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