What is cost of common equity and wacc

Assignment Help Financial Management

Reference no: EM131897301

Palencia Paints Corporation has a target capital structure of 45% debt and 55% common equity, with no preferred stock. Its before-tax cost of debt is 8%, and its marginal tax rate is 40%. The current stock price is P0 = $27.00. The last dividend was D0 = $3.00, and it is expected to grow at a 4% constant rate. What is its cost of common equity and its WACC? Round your answers to two decimal places. Do not round your intermediate calculations.

rs = %

WACC = %

Reference no: EM131897301

Questions Cloud

What is the company cost of preferred stock : If the firm's marginal tax rate is 40%, what is the company's cost of preferred stock?

Analyze the duties of administrative agencies : The purpose of this assignment is to analyze the duties of administrative agencies and the ethics behind regulatory compliance requirements.

Actions and ming economic development : What effects did mongul actions and ming economic development have on Korea, Japan and Vietnam?

How would address integration into organizational culture : The blending of cultures is becoming increasingly prevalent as individuals of different races or cultures intermarry. As a manager, how would you address.

What is cost of common equity and wacc : it is expected to grow at a 4% constant rate. What is its cost of common equity and its WACC?

French and atlantic revolutions : To what extent are revolutions a change and to what extent are they a return? Is there any unifying aspects to the Atlantic Revolutions?

What are the basic elements of ethnographic fieldwork : What are the basic elements of ethnographic fieldwork? Discuss the potential strengths and weaknesses of each of these techniques.

How professional etiquette impacts workplace relationships : Evaluate the effect of attitude, personality, and goal setting on work performance development. how professional etiquette impacts workplace relationships.

How absolute was absolutism : During the age of absolutism. How absolute was absolutism? In what ways does royal architecture reflect the ideas of the Divine Right of Kings?

User Account

All Pages