1. San Dimas Energy Inc. has total debt-to-equity ratio of 0.6. Currently, its debt has a pretax interest rate of 10%. The firm’s common stock trades at $15.00 per share and its most recent dividend was $1.00. Future dividends are expected grow by 4%. If the tax rate is 35%, what is Plasti-tech's WACC?
2. True or false?
If an investor has a loss position in an investment and wants to sell it, the best time to sell for tax purposes is when a capital gain is available against which the loss can be applied.