Easy Car Corp. is a grocery store located in the Southwest. It plans to pay an annual dividend of $3.00 next year to it
Posted: Wed Jul 06, 2022 6:25 am
Easy Car Corp. is a grocery store located in the Southwest. Itplans to pay an annual dividend of $3.00 next year to itsshareholders and plans to increase the dividend annually at therate of 2.0%. It currently has 1,000,000 common sharesoutstanding. The shares currently sell for $15 each. Easy CarCorp. also has 20,000 semiannual bonds outstanding with a couponrate of 7%, a maturity of 21 years, and a par value of $1,000.The bonds currently have a yield to maturity (YTM) of 6%. What isthe weighted average cost of capital (WACC) for Easy Car Corp. ifthe corporate tax rate is 20%?
When answering this problem enter your answer using percentagenotation but do not use the % symbol and use two decimals(rounding). For example, if your answer is 0.10469 then enter10.47; if your answer is 10% then enter 10.00
When answering this problem enter your answer using percentagenotation but do not use the % symbol and use two decimals(rounding). For example, if your answer is 0.10469 then enter10.47; if your answer is 10% then enter 10.00