Question
Renegade Corp. just paid an annual dividend in the amount of $1.35 per share. The dividend growth rate is 3%. Renegades stock is currently selling
Renegade Corp. just paid an annual dividend in the amount of $1.35 per share. The dividend growth rate is 3%. Renegade’s stock is currently selling at $36 per share and there are 210,000 shares outstanding. Renegade also has 6,000 bonds outstanding that are selling at 99% of par. The bonds carry a 6.8% coupon, pay interest semi-annually, and mature in 11 years. The company's tax rate is 33%.
What is Renegade's weighted average cost of capital?
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
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