Question
An analyst gathered the following information for a company: Stock price: $45 Last years dividend per share: $5 Dividend growth rate: 8% Cost of debt:
An analyst gathered the following information for a company:
Stock price: $45
Last years dividend per share: $5
Dividend growth rate: 8%
Cost of debt: 9%
Tax rate: 35%
Target debt to equity ratio: 0.4
What is the firms WACC?
| A. | 15.96% | |
| B. | 14.34% | |
| C. | 10.86% | |
| D. | 16.86% |
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Managing Finance A Socially Responsible Approach
Authors: D. Crowther
1st Edition
0750661011, 978-0750661010
