Question
Calculate the firms WACC using the following information: cost of new debt financing: 10% the debt portion of their capital structure: 35% common shares currently
Calculate the firms WACC using the following information:
cost of new debt financing: 10%
the debt portion of their capital structure: 35%
common shares currently sell for: $20.00
The next anticipated dividend (D1): $2.00
The firms tax rate: 25%
The firms future growth rate: 6%
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Financial Reporting and Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
7th edition
1259722651, 978-1259722653
