Calculate WNO Co Weighted Average Cost of Capital

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Question - WNO Co. has common shares and bonds issued and outstanding, and has a corporate income tax rate is 25%.

The yield on the Debt of WNO Co. is 4%.

WNO Co. paid a Dividend of $8.00/share last year. Based on your research, you have concluded that the Dividends will grow at a rate of 6% per year indefinitely into the future.

The common shares of WNO Co. currently trade at $45.00 per share. There are currently 900 common shares outstanding.

The total market value of the Debt is $20,000.00.

Required - Calculate WNO Co.'s Weighted Average Cost of Capital (WACC).

Reference no: EM132934024

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