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What is plasti-tech wacc

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Reference no: EM13290284

Plasti-tech Inc. is financed 60% with equity and 40% with debt. Currently, its debt has a before-tax interest rate of 12%. Plasti-tech's common stock trades at $15.00 per share and its most recent dividend was $1.00. Future dividends are expected to grow by 4%. If the tax rate is 34%, what is Plasti-tech's WACC?

a. 7.39%
b. 9.57%
c. 9.73%
d. 11.20%

 

Reference no: EM13290284

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