Question
What preliminary numbers do I need to find to determine WACC? All calculations should be carried out to four decimal places. ThomasCorp. has a marginal
What preliminary numbers do I need to find to determine WACC?
All calculations should be carried out to four decimal places.
ThomasCorp. has a marginal tax rate of 40%.It has issued bonds that total $2,000,000.They pay6% per annum. What is the cost of the bond debt?
They further have preferred stock totaling $8,000,000.This stock pays an annual dividend of 6.5%% on the $100 par value stock. The net proceeds of the preferred stock on issuance date was $98.Calculate the cost of capital for the preferred stock.
The common stock totals $10,000,000, currently the dividend is $2.20 with an average growth rate of 7.5%.The firm received $49on average for each $50 par value common share.Calculate the cost of the capital for the common stock.
Calculate the WACC forThomasCorp.
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