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Jane s Shop has a cost of debt of 6%, and a cost of equity of 12%. The firm has 100 shares of common stock
Jane s Shop has a cost of debt of 6%, and a cost of equity of 12%. The firm has 100 shares of common stock outstanding at a market price of $20 a share. There are 40 shares of preferred stock outstanding at a market price of $34 a share. The bond issue has a total face value of $500 and sells at 102% of face value. Its WACC is 9.3591% and its marginal tax rate is 34%. What is its constant dividend per share, to the nearest cents?
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