What is the firm WACC, The yield on the company's

What is the firm WACC

Reference no: EM132162497

Question - Assume that you are an intern with the Brayton Company and you have collected the following data: The yield on the company's outstanding bonds is 7.75; its tax rate is 40%, the next expected dividend is $0.65 a share; the dividend payout ratio is 40%; return on equity (ROE); the price of the stock is $15.00 per share the flotation cost for selling new shares is F-5%, and the target capital structure is 45%, debt and 55% common equity. What is the firm's WACC, assuming it must issue new stock to finance its capital budget?

Reference no: EM132162497

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