finance quiz assistance cost of capital

Jul 20th, 2015
Business Finance
Price: $10 USD

Question description


What is the after tax cost of debt if the marginal tax rate is 30% and the yield to maturity on long-term bonds is 8.0%?





After tax cost of debt is YTM*(1-T)


What is the cost of common stock if the dividend just paid was $2,00, the growth rate in dividends is expected to be 6.5% and the price of the stock is currently $35.50?





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(Top Tutor) Saroj N
School: University of Maryland

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