Company B is financed as follows: 70% with equity and 30% with debt. Debt has an interest rate of 8%. Company B trades common stock @ $25 per share and its most recent common stock dividend paid was $2.00. Future dividends are expected to grow at 5%. Tax rate is 40%. What is Company B weight average cost of capital? (show all work in excel)
Company B is financed as follows: 70% with equity and 30% with debt. Debt has an interest rate of 8%. Company B trades common stock @ $25 per share and its most recent common stock dividend paid was $2.00. Future dividends are expected to grow at 5%. Tax rate is 40%. What is Company B weight average cost of capital? (show all work in excel)
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The post Company B is financed as follows: 70% with equity and 30% with debt. Debt has an interest rate of 8%. Company B trades common stock @ $25 per share and its most recent common stock dividend paid was $2.00. Future dividends are expected to grow at 5%. Tax rate is 40%. What is Company B weight average cost of capital? (show all work in excel) appeared first on Superb Professors.
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