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I&G Corporation has a target capital structure of 47% shareholders equity and 53%.Its before-tax cost of debt is 19% . The marginal tax rate is
I&G Corporation has a target capital structure of 47% shareholders equity and 53%.Its before-tax cost of debt is 19% . The marginal tax rate is 40 percent . The current stock price is P0 = $20 . The last dividend was D0 = $2,00 and it is expected to grow at a constant rate of 8 percent . What is the cost of common equity, cost of preferred equity and its WACC ?
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