What is the companys wacc in percent if all the equity used


Jedi Enterprises stock trades for $44 per share. It is expected to pay a $2.4 dividend at year end, and the dividend is expected to grow at a constant rate of 3.1% a year. The before-tax cost of debt is 5%, and the tax rate is 34%. The target capital structure consists of 40% debt and 60% common equity. What is the company's WACC (in percent) if all the equity used is from reinvested earnings?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the companys wacc in percent if all the equity used
Reference No:- TGS02560574

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)