Given an optimal capital structure that is 50% debt and 50% common stock, calcul

Question

Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost of capital for stone corp. given the following information: Bond coupon rate 8% Bond yield 6% Dividend expected $5 Price common $80 Growth rate 5% Corporate tax rate 30% Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost of capital for stone corp. given the following information: Bond coupon rate 8% Bond yield 6% Dividend expected $5 Price common $80 Growth rate 5% Corporate tax rate 30% Bond coupon rate 8% Bond yield 6% Dividend expected $5 Price common $80 Growth rate 5% Corporate tax rate 30%

Explanation / Answer

7.88%

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