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Company A wants to calculate its WACC. It has just issued a 10-year, 6% coupon, non-callable bond at par value. A's current stock price is
Company A wants to calculate its WACC. It has just issued a 10-year, 6% coupon, non-callable bond at par value. A's current stock price is $40 and A just paid s $0.5 per share dividend. A's dividend payment is expected to grow at a constant rate of 7% a year. A wants to keep a debt-to-capital ratio of 80%. Tax rate is 35%. If A does a not have preferred stock and floatation costs, what is its WACC (please report WACC as a decimal number with four decimal places, such as 0.0562)? a Your
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