Calculate the companys weighted average cost of capital use


Corporation (not real) has a targeted capital structure of 40% long term debt and 60% common stock. The debt is yielding 6% and the corporate tax rate is 35%. The common stock is trading at $50 per share and next year's dividend is $2.50 per share that is growing by 4% per year. Calculate the company's weighted average cost of capital. Use the dividend discount model.

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Financial Management: Calculate the companys weighted average cost of capital use
Reference No:- TGS02361628

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