Djh has a debt ratio of l 39. its borrowing rate is rd , Ask an Expert

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Q. The DJH Corporation just paid a dividend of $2.07. It expects its cash dividends to grow 6.0% per year forever. DJH has a debt ratio of L = 39%. Its borrowing rate is rd = 7.5%. DJH pays corporate taxes at the rate of 37%, rf = 3.9%, rM = 12.0%, also DJH's common stock is currently selling for $26 per share. Illustrate what is DJH's expected cost of stock

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M9366759

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