Note: - You are attempting question 2 out of 12 XYZ Company holds 30% Debt, 30% Preferred stock, 40% Common stock. Interest rate on debt is 7.50%. Price of preferred stock is $90, and dividend on...


Note: -<br>You are attempting question 2 out of 12<br>XYZ Company holds 30% Debt, 30% Preferred stock, 40% Common stock. Interest rate<br>on debt is 7.50%. Price of preferred stock is $90, and dividend on preferred stock is $6.00.<br>Company just paid dividend of $2.50 on Common stock and price of Common stock is<br>$30. Dividend on common stock grows at 5%. Company pays tax at 40%.<br>Calculate the WACC of XYZ Company.<br>a) 9.75%<br>b) 8.85%<br>c) 7.58%<br>d) 9.58%<br>Answer<br>D.<br>dul ENG<br>

Extracted text: Note: - You are attempting question 2 out of 12 XYZ Company holds 30% Debt, 30% Preferred stock, 40% Common stock. Interest rate on debt is 7.50%. Price of preferred stock is $90, and dividend on preferred stock is $6.00. Company just paid dividend of $2.50 on Common stock and price of Common stock is $30. Dividend on common stock grows at 5%. Company pays tax at 40%. Calculate the WACC of XYZ Company. a) 9.75% b) 8.85% c) 7.58% d) 9.58% Answer D. dul ENG

Jun 07, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here