Current market value of common shares 10 million


The information given here has been gathered about O'ryan Swim- Where, Ltd. 

Based on this information, estimate O'ryan's WACC.

Current market value of common shares (10 million outstanding) $23.63/share Next year's expected cash dividend $1.92/share Expected constant annual dividend growth rate 8% Current market value of bonds (100,000 bonds outstanding, 8.5% coupon, maturing in 21 years) $835.00/bond Corporate tax rate 34%

Solution Preview :

Prepared by a verified Expert
Financial Management: Current market value of common shares 10 million
Reference No:- TGS01493734

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)