Patton paints has a target capital structure of 40 debt and


Patton paints has a target capital structure of 40% debt and 60% equity with no preferred stock. It'd before tax cost of debt is 12% and marginal tax rate is 40% . The current stock price is $22.50. The last dividend was $2.00 (Do) and is expected to grow at a constant rate of 7%. What is the cost of common equity and WACC?

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Financial Management: Patton paints has a target capital structure of 40 debt and
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