Question
An analyst gathered the following information regarding MT Technologies: Current market share price = $42 Current dividend = $1.02 per share Earnings retention rate =
An analyst gathered the following information regarding MT Technologies:
Current market share price = $42
Current dividend = $1.02 per share
Earnings retention rate = 70%
Return on equity = 22%
Aftertax cost of debt = 9%
Marginal tax rate = 35%
Target debttoequity ratio = 0.3
The companys weighted average cost of capital is closest to:
Group of answer choices
15.44%
16.08%
15.35%
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
