1
answer
0
watching
118
views
28 Nov 2020
Sorensen Systems Inc. is expected to pay a $2.50 dividend at year-end (d1=$2.50), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $52.50 a share. the before-tax cost of debt is 7.50%, and the tax rate is 40%. The target capital structure consists of 45% debt and 55% common equity. What is the company's WACC?
Sorensen Systems Inc. is expected to pay a $2.50 dividend at year-end (d1=$2.50), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $52.50 a share. the before-tax cost of debt is 7.50%, and the tax rate is 40%. The target capital structure consists of 45% debt and 55% common equity. What is the company's WACC?
Joshua StredderLv10
17 Jan 2021
