Cost of Common Equity and WACC Assignment | Homework For You
May 29th, 2020
Problem 10.08 (Cost of Common Equity and WACC) Question 6 of 20 Palencia Paints Corporation has a target capital structure of 45% debt and 55% common equity, with no preferred stock. Its before-tax cost of debt is 12%, and its marginal tax rate is 25%. The current stock price is Po = $35.00. The last dividend was Do = $3.75, and it is expected to grow at a 5% constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places. Is = WACC =. Get Finance homework help today

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