Weighted Average Cost of Capital Assignment | Homework For You
June 3rd, 2020
Patton Paints Corporation has a target capital structure of 35.20% debt and 64.80% common equity, with no preferred stock. Its before-tax cost of debt is 7.60%, and its marginal tax rate is 30.00%. The current stock price is $21.50. The last dividend was $2.00, and it is expected to grow at a 5.30% constant rate.

a) What is its cost of common equity?
b) What is its WACC?
a) 15.10%; b)12.57% O a)14.60%; b)11.33%
a)15.10%; b)11.65%
a)9.26%; b)8.03% Oa)9.30%; b)7.90%. Get Finance homework help today