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hello, can you please help me with these three! thank you. 14) A company has a weighted average cost of capital of 11.5%. Its capital
hello, can you please help me with these three! thank you.
14) A company has a weighted average cost of capital of 11.5%. Its capital structure is equity and debt. The before-tax cost of debt is 9 percent Company's flat tax rate is 30%. What is the company's cost of equity if its weight is 55%? A) 15.75% B) 15.65% C) 8.66% 1 D) 13.54% 15) Costa caf S.A. paid dividend AED 25.5 per share, the growth rate of dividends is 4 percent, and the required return by investors is 7 percent. The value of a share of Costa caf S.A.'s common stock is: A) AED 884 B) AED 850 C) AED 855 D) AED 384 16) A company finances its operations with 60 percent equity and 40 percent debt. Its net income is $100 million. The required rate of return on company's debt is 10 percent and the cost of equity is 10.55%. The company's tax rate is 40 percent. What is the company's WACC? A) 10.33% B) 8.73% C) 26.5% D) 10.16% Step by Step Solution
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