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Dashy-Paints Corporation has a target capital structure of 45% debt, 20% preferred stock, and 35% common stock. Its before-tax cost of debt is 8%, preferred
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Dashy-Paints Corporation has a target capital structure of 45% debt, 20% preferred stock, and 35% common stock. Its before-tax cost of debt is 8%, preferred stock cost is 9.5%, and its marginal tax rate is 40%. The current stock price is $22.00. The last dividend was at 2.25, and is expected to grow at a 5% constant rate. What is the firms WACC?
12.09%
11.32%
9.57%
11.01%
9.88%
Dashy-Paints Corporation has a target capital structure of 45% debt, 20% preferred stock, and 35% common stock. Its before-tax cost of debt is 8%, preferred stock cost is 9.5%, and its marginal tax rate is 40%. The current stock price is $22.00. The last dividend was at 2.25, and is expected to grow at a 5% constant rate. What is the firms WACC?
12.09% | ||
11.32% | ||
9.57% | ||
11.01% | ||
9.88% |
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