Question
The following is your company's capital structure & other financial information: Long-term debt: $400,000 @ 15% interest rate (before tax) Equity: $600,000 Tax Rate: 40%
The following is your company's capital structure & other financial information:
Long-term debt: $400,000 @ 15% interest rate (before tax)
Equity: $600,000
Tax Rate: 40%
Beta of the Co. 1.5
The current yield rate of the 10-year Treasury Bond is 5%
Normal Risk Premium is 10%
49. What is the overall growth rate this company has to maintain to satisfy the entire investors (creditors & shareholders)? Please do not put "%" in your answer. Just put the number (for example, 10.0 for 10.0%)
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
12th Edition
0136096689, 978-0136096689
