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HCMBA OOXCLA GIF D D 11 Question 3 What is the company's weighted average cost of capital (WACC)? O 8.33% O 9.32% Johnson Industries finances
HCMBA OOXCLA GIF D D 11 Question 3 What is the company's weighted average cost of capital (WACC)? O 8.33% O 9.32% Johnson Industries finances its projects with 40 percent debt, 10 percent preferred stock, and 50 percent common stock. The company can issue bonds at a yield to maturity of 8.4 percent (i.e. rd). The cost of preferred stock is 9 percent. The company's common stock currently sells for $30 a share. The company's dividend is currently $2.00 a share (Do = $2.00), and is expected to grow at a constant rate of 6 percent per year. Assume that the flotation cost on debt and preferred stock is zero, and no new stock will be issued. . The company's tax rate is 30 percent. O 9.79% O 9.99% 13.15% Question 4 JUL 18 m Zoom Meeting tv a Hamilton Company's 8 percent coupon rate, quarterly payment, $1,000 par value bond, which matures in 20 years, currently sells at a price of $686.86. The company's tax rate is 40 percent. Based on the nominal interest rate (Hint: annual interest rate). what
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