chapter 105. Cost of Comm

chapter 105. Cost of Comm

chapter 105. Cost of Common Equity and WACCPatton Paints Corporation has a target capital structure of 25% debt and 75% common equity, with no preferred stock. Its before-tax cost of debt is 8% and its marginal tax rate is 40%. The current stock price is P0 = $22.50. The last dividend was D0 = $2.25, and it is expected to grow at a 6% constant rate. What is its cost of common equity and its WACC? Round your answers to two decimal places.rs =  %WACC =  %

%d bloggers like this: