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Please use top information to answer the last question for WACC! As soon as possible GHI Company's current share price is $19.45 and it is
Please use top information to answer the last question for WACC! As soon as possible
GHI Company's current share price is $19.45 and it is expected to pay a $1 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 5.1% per year. What is an estimate of GHI Company's cost of equity ? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include a percent sign in your answer. Enter your response below. 10.24 Correct response: 10.24+0.01 Click "Verify" to proceed to the next part of the question. GHI Company also has preferred stock outstanding that pays a $1.7 per share fixed dividend. If this stock is currently priced at $29.95 per share, what is GHI Company's cost of preferred stock? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include a percent sign in your answer. Enter your response below. 5.68 correct response: 5.6810.01 Click "Verify" to proceed to the next part of the question. GHI Company has existing debt issued three years ago with a coupon rate of 6%. The firm just issued new debt at par with a coupon rate of 5.9%. What is GHI Company's pre-tax cost of debt? Enter your answer as a percentage. Do not include a percent sign in your answer. Enter your response below. 5.9 correct response: 5.980.01 Click "Verify" to proceed to the next part of the question. GHI Company has 5 million common shares outstanding and 1 million preferred shares outstanding, and its equity has a total book value of $60 million. Its debt has a market value of $25 million. If GHI Company's common and preferred shares are priced at $19.45 and $29.95, respectively, what is the market value of GHI Company's assets? Enter your answer in millions of dollars. V = 152.2 correct response: 152.20.01 million Click "Verify" to proceed to the next part of the question. GHI Company faces a 35% tax rate. Using the correct answers from the previous parts, what is the company's WACC? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include the percentage sign in your answer. WACC = Number Click "Verify" to proceedStep by Step Solution
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