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Fallax Corp. common stock is currently priced at $43.50 per share in the open market. Analysts expect Fallax to offer $1.75 per share in dividends
Fallax Corp. common stock is currently priced at $43.50 per share in the open market. Analysts expect Fallax to offer $1.75 per share in dividends at the end of next year, which is projected to grow at 5.2% indefinitely. What is Fallaxs cost of internal common equity? |
Wellstock Corp. will issue new common stock. The companys existing common stock is selling for $26.50 per share and offered $2.25 per share in dividends at the end of last year. Dividends are expected to grow at an annual rate of 6% indefinitely. New issues of common stock will incur 8% of the current market price. What is the cost of the companys new commonstock? |
Deolity Inc. is raising funds for a new project with $6 million in bonds, $4 million in preferred stock, and $10 million in retained earnings. The corporations after-tax cost of debt is 9%, cost of preferred stock is 15%, and cost of retained earnings is 21%. What is the firms WACC? |
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