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Using the info in question 8, assume this time that the CFO issues new shares to raise $10mio and uses it to pay a $10mio
Using the info in question 8, assume this time that the CFO issues new shares to raise $10mio and uses it to pay a $10mio cash dividend. What would be the share price once the dividend is paid ? A) $25 B) $15.5 OC) $20.83 D) $28.43 Clear selection Question 10 of 25 Points: 1 Company XYZ has assets equal to $50mio, debt of $20 Mio. Its cost of debt is 5% and its cost of equity is 8%. The corporate Tax rate is equal to 25%. What is company XYZ's WACC? A) 6.2% B) 6.9% C) 6.3% D) 6.8% Clear selection
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