Question
Equity comprises of 70% of total capital (Total Capital = D+E). The firm does not have preferred stock. The firm's bonds yield 9% before taxes.
Equity comprises of 70% of total capital (Total Capital = D+E). The firm does not have preferred stock. The firm's bonds yield 9% before taxes. Tax rate is 40%. Next time period dividend is forecasted at $ 0.80 per share and is expected to grow at a constant rate of 9% per year for a considerable period. Current stock price is $25. Find the WACC.
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Technical Analysis The Complete Resource for Financial Market Technicians
Authors: Charles D. Kirkpatrick, Julie R. Dahlquist
1st edition
134137043, 134137049, 978-0131531130
