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Business, 04.07.2019 18:10 ladya1613

Rankin pharmaceutical company maintains a debt-equity ratio of 0.65 and has a tax rate of 32 percent. the firm does not issue preferred stock. the pre-tax cost of debt is 9.8 percent. there are 25,000 shares of stock outstanding with a beta of 1.2 and a market price of $19 a share. the current market risk premium is 8.5 percent and the current risk-free rate is 3.6 percent. this year, the firm paid an annual dividend of $1.10 a share and expects to increase that amount by 2 percent each year. using an average expected cost of equity, what is the weighted average cost of capital?

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Rankin pharmaceutical company maintains a debt-equity ratio of 0.65 and has a tax rate of 32 percent...
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