EO eBook Palencia 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 13%, and its marginal tax rate is 25%. The current stock price is Po $35.00. The last dividend was Do = $2.50, and it is expected to grow at a 4% constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places. Ts => WACC= % %

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Palencia 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 13%,
and its marginal tax rate is 25%. The current stock price is Po $35.00. The last dividend was Do $2.50, and it is expected to grow at a 4% constant rate.
What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places.
Tg =>
WACC =
%
%
Transcribed Image Text:eBook Palencia 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 13%, and its marginal tax rate is 25%. The current stock price is Po $35.00. The last dividend was Do $2.50, and it is expected to grow at a 4% constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places. Tg => WACC = % %
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