Monsanto company has 3 million shares selling at 25 each, Ask an Expert

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Monsanto Company has 3 million shares, selling at $25 each. The company has just paid a dividend of $1.35 and the next year's dividend is expected to be $1.50, which is in line with its long-term growth rate. Monsanto has $50 million (face amount) of bonds, maturing in 10 years, with coupon 8%. The yield to maturity for the bonds is 10%. The income tax rate of the company is 30%. Find its WACC.

Answer: 13.38%

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Corporate Finance, Finance

Category:- Corporate Finance
Reference No.:- M9526938

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