Beaverton corporation has debtassets ratio of 25 its cost


Beaverton Corporation has debt/assets ratio of .25, its cost of debt is 7% and that of equity 12%. The tax rate of Beaverton is 30%. The company is not growing and it has a dividend payout ratio of 100%. Its dividend per share is $2.5. Beaverton has 2.5 million shares of common stock. Find the total value of Beaverton, and its WACC.

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Financial Management: Beaverton corporation has debtassets ratio of 25 its cost
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