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Palencia Paints Corporation has a target capital structure of 45% debt and 55% common equity, with no preferred stock. I
Posted: Fri Jul 01, 2022 7:51 am
by answerhappygod
- Palencia Paints Corporation Has A Target Capital Structure Of 45 Debt And 55 Common Equity With No Preferred Stock I 1 (28.43 KiB) Viewed 32 times
Palencia Paints Corporation has a target capital structure of 45% debt and 55% common equity, with no preferred stock. Its before-tax cost of debt is 12%, and its marginal tax rate is 25%. The current stock price is Po = $32.00. The last dividend was Do = $2.25, and it is expected to grow at a 7% constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places. rs = WACC = % %