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QUESTIONS A company has a target capital structure of 35% debt and 65% equity, with no preferred stock. The before-tax cost of debt is 5,5%
QUESTIONS A company has a target capital structure of 35% debt and 65% equity, with no preferred stock. The before-tax cost of debt is 5,5% and its tax rate is 21%. The current stock price is 545.5. The last dividend was $3.15, and it is expected to grow at 3.5% constant rate. What is the cost of common equity and the WACC? O 14.86%, 10.07% 9.58% 14.38% 07.14%, 12.36% 10.67% 8,45% O 12 89%, 9.51% QUESTION 9 A company's target capital structure consist of 40% debt and 60% common equity, with no preferred stock. The yield to maturity on the company's debt is 12.5% and its tax rate is 21%. The company's WACC is 9.50% What is this company's cost of common equity? 18.57% 11.68% 15.83% 9.25% O 13.42%
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