Patton paints corporation has a target capitol structure of, Ask an Expert

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Patton Paints Corporation has a target capitol structure of 60% debt and 40% common equity, with no preferred stock. It's before-tax cost of debt is 12% and it's marginal tax rate is 40%. The current stock price is $22.50. The last dividend was D0=$2.00, and it's expected to grow at a constant rate of 7%. What is it's cost of common equity and it's WACC?

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Financial Management, Finance

Category:- Financial Management
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