What is the iniesta corporation weighed average

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Reference no: EM131930101

Iniesta Corporation's target capital structure is 40 percent debt, 50 percent common stock, and 10 percent preferred stock. Information regarding the company's cost of capital can be summarized as follows:

  • Company sold a non-callable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $1,075, and has a par value of $1,000.
  • The company's preferred stock currently sells for $87.88 per share, and it pays an $8.00 annual dividend.
  • The company is expected to pay $1.45 dividend per share at the end of this year. Financial analysts believe that the company is expected to grow at a constant rea of 6.50 percent in future years. The stock of the company is currently sells for $22.50
  • The company's tax rate is 40%
  • What is the Iniesta Corporation's weighed average cost of capital (WACC)?

Reference no: EM131930101

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