What is its cost of common equity and its WACC

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Patton Paints Corporation has a target capitol structure of 60% debt and 40% common equity, with no preferred stock. It's before-tax cost of debt is 12% and it's marginal tax rate is 40%. The current stock price is $22.50. The last dividend was D0=$2.00, and it's expected to grow at a constant rate of 7%. What is it's cost of common equity and it's WACC?

Reference no: EM131353070

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What is its cost of common equity and its WACC : Patton Paints Corporation has a target capitol structure of 60% debt and 40% common equity, with no preferred stock. It's before-tax cost of debt is 12% and it's marginal tax rate is 40%. The current stock price is $22.50. The last dividend was D0=$2..

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