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Show work on Excel Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $73. The most recent dividend was
Show work on Excel
Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $73. The most recent dividend was $3.90 and the dividend growth rate is 6 percent. The company also has two bond issues outstanding. The first bond issue has a face value of $85 million, a 7 percent coupon, and sells for 97 percent of par. The second issue has a face value of $50 million, an 8 percent coupon, and sells for 108 percent of par. The first issue matures in 21 years, the second in 6 years. What are the company's capital structure weights on a market value basis? Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 21 percent. What is the company's WACCStep by Step Solution
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