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You have come up with the following data concerning Zion Company. * The company has 2,500,000 shares. * The company's debt is 90% from the
You have come up with the following data concerning Zion Company.
* The company has 2,500,000 shares.
* The company's debt is 90% from the company market value. The interest rate paid last year by the company was $500,000.
* The company paid total dividends of $800,000 last year, which is 25% of its pretax profit, and its expected growth next year is $50,000 more.
* The company paid taxes of $950,000.
* The cost of capital requested by the investors is 13%
What is the company's WACC?
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