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Elementary,Middle School,High School,College,University,PHD
Teaching Since: | Apr 2017 |
Last Sign in: | 328 Weeks Ago, 2 Days Ago |
Questions Answered: | 3232 |
Tutorials Posted: | 3232 |
MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Your firm recently paid a dividend of $4 to common stockholders. Dividends are expected to grow at 8% per year for the foreseeable future. The current stock price is $54.
A $15 million bank line of credit is available with an interest rate of 9 percent. The firm's tax rate is 34%.
What is the firmA????1s cost of capital if their capital structure consists of 60% equity and 40% bank loans?
 | 11.98% |
 | 15.20% |
 | 13.21% |
 | 14.60% |
 | 12.58% |
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