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Calculating 'ZZZ' WACC Dividends at time 0 600,000 Growth in dividends 3% Number of shares repurchased: 150,000 Number of shares 2,000,000 Share's Price 2.5 Debt
| Calculating 'ZZZ' WACC | ||
| Dividends at time 0 | 600,000 | |
| Growth in dividends | 3% | |
| Number of shares repurchased: | 150,000 | |
| Number of shares | 2,000,000 | |
| Share's Price | 2.5 | |
| Debt | 3,000,000 | |
| Interest paid | 250,000 | |
| Tax rate, TC | 30% | |
| A. Calculating the company's cost of capital using Gordon model | ||
| Sum of repurchase= | ||
| Dividends at time 0= | ||
| Total Payment to Shareholders= | ||
| Current payout per share= | ||
| Cost of equity, rE= | ||
| B. Calculating the WACC | ||
| Company market value= | ||
| Cost of debt, rD= | ||
| Total company value (E+D)= | ||
| WACC= | ||
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The Oxford Handbook Of Pricing Management
Authors: Ozalp Ozer, Robert Phillips
1st Edition
0199543178, 978-0199543175
