Question
Power Financial Corp has a current share price of $34, and a market capitalization of $24 billion. The company is expected to pay a dividend
Power Financial Corp has a current share price of $34, and a market capitalization of $24 billion. The company is expected to pay a dividend of $0.37 per share, with a dividend growth rate of 4% per year. The firm has $18 billion of debt with a yield to maturity of 6%. If the firm's tax rate is 30%, what is Power Financial's WACC?
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Public Finance In Canada
Authors: Harvey S. Rosen, Ted Gayer, Jean-Francois Wen, Tracy Snoddon
5th Canadian Edition
1259030776, 978-1259030772
