Suppose that a stock had a beta of 2.7. The market risk premium is 7.6% and the risk-free rate is 2.6%, The last dividend was $2.70 a share and the dividend is expected to grow at 5% indefinitely. What is the current price of the stock?
Assuming the following information: The company has a target Debt/Total Asset ratio of 20%. Their cost of debt is 5% before taxes and the tax rate is 25%. What is the WACC (weighted-average cost of capital)?