Homework Answers
| cost of equity= | D1/P0(1-Flotation cost) + g | ||
| cost of equity= | 1.1/25*(1-.1) + .05 | ||
| cost of equity= | 9.89% | ||
| Cost of debt= | 4% | ||
| WACC=cost of Debt*Weight of debt *(1-tax)+Cost of equity*Weight of equity | |||
| WACC=.3*4*(1-.4)+.7*9.89 | |||
| WACC= | .72+6.9222 | ||
| WACC= | 7.64% | ||
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n analyst has collected the following information regarding Christopher Co. The company's capital structure is 70...
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