Business, 03.12.2020 20:10 forshee785

Proper Paints Company has a target capital structure of 35% debt and 65% common equity with no preferred stock. Its before tax cost of debt is 8% and its marginal tax rate is 25%. The current stock price is P0 = $22. The last dividend was D0 = $2.25 and it is expected to grow at a 5% constant rate. What is its cost of equity and it's WACC?

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Proper Paints Company has a target capital structure of 35% debt and 65% common equity with no prefe...

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