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Fundamental Toys inc. is expected to pay a $1.55 dividend at year-end (D1 = $1.55). The dividend is expected to grow at a constant rate
Fundamental Toys inc. is expected to pay a $1.55 dividend at year-end (D1 = $1.55). The dividend is expected to grow at a constant rate of 5.75% a year, and the common stock currently sells for $31.50 a share. The before-tax cost of debt is 6.50%, and the tax rate is 45%. The target capital structure consists of 40% debt and 60% common equity. How would you find the numbers to for a WACC formula?
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