What will be the firms wacc

Reference no: EM133332041

Question: Patton Paints Corporation has a market capital structure of 40% debt and 60% common stock (no preferred stock). The company's before tax cost of debt is 9% and its marginal tax rate is 40%. The current stock price is Po = $22.50; the last dividend was Do = $2.00; and the dividend is expected to grow at a constant rate of 7%. What will be the firm's WACC?

Reference no: EM133332041

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