Cost of Capital (WACC: Weighted Average Cost of Capital)

are $100 million and it has a dividend payout ratio of 35 percent. The interest rate on company’s debt is 11 percent and the tax rate is 40%. The company’s common stock trades at $30 per share, and its current dividend of $2.00 per share is expected to grow at a constant rate of 8% a year. ................
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