Patton paints corporation has a target capital structure of


Patton Paints Corporation has a target capital structure of 25% debt and 75% common equity, with no preferred stock. It’s before-tax cost of debt is 12% and its marginal tax rate is 40%. The current stock price is P0 = $31.00. The last dividend was D0 = $3.75 and it is expected to grow at a 4% constant rate. What is its cost of common equity and it’s WACC? Round your answers to two decimal places.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Patton paints corporation has a target capital structure of
Reference No:- TGS01178760

Expected delivery within 24 Hours