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Calculate the cost of capital for Sky Limit USA, based on the following information (round to 1 decimal place): Book value of Long-term debt outstanding:
Calculate the cost of capital for Sky Limit USA, based on the following information (round to 1 decimal place):
| Book value of Long-term debt outstanding: | $300,000 | |||||
| Market value of Long-term debt outstanding: | $320,000 | |||||
| Current yield to maturity (rdebt): | 8% | |||||
| Number of shares of common stock: | 10,000 | |||||
| Price per share: | $50 | |||||
| Dividend per share: | $5 | |||||
| Expected growth rate of stock: | 4% | |||||
| Tax rate | 35% | |||||
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
