Problem 1 The CCC Corporation made available the following data as requested: Total interest payments on bonds payable P60,000 Preferred stock dividends 20,000 Common Stock dividends 24,000 Annual growth on common stock dividend 2% Market Values of: Bonds Payable P400,000 Common Stock 300,000 Preferred Stock 200,000\ Retained Earnings 100,000 Company Tax rate 30% Stockholders' Marginal Tax Rate 70% REQUIRED: Calculate the firm's Cost of Capital
Problem 1
The CCC Corporation made available the following data as requested:
Total interest payments on bonds payable P60,000
Common Stock dividends 24,000
Annual growth on common stock dividend 2%
Market Values of:
Bonds Payable P400,000
Common Stock 300,000
Preferred Stock 200,000\
Company Tax rate 30%
Stockholders' Marginal Tax Rate 70%
REQUIRED: Calculate the firm's Cost of Capital
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