Question
Beauty Corporation uses no preferred stock. Their capital structure uses 65% debt ). Their marginal tax rate is 35.79%. Their before-tax cost of debt is
Beauty Corporation uses no preferred stock. Their capital structure uses 65% debt ). Their marginal tax rate is 35.79%. Their before-tax cost of debt is 6.37%. Beauty corporation's stock paid a dividend per share of $1.15 in the current year. and their dividend is expected to grow at 6.78% over the long-run. Their stock currently trades at $65.79 per share. What is Beauty Corporation's weighted average cost of capital (WACC)? Please enter without using the "%", but with two decimal places (in other words if you calculate 9.87%, then just enter 9.87).
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