University of Iowa-BUSINESS 3000-AJAX Corp. has $1300 in debt outstanding and $2700

Question # 00272175 Posted By: step4 Updated on: 05/04/2016 05:56 AM Due on: 06/03/2016
Subject Finance Topic Finance Tutorials:
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AJAX Corp. has $1300 in debt outstanding and $2700 in common stock (and no preferred stock). Its marginal tax rate is 40%. Marie's bonds have a YTM of 8.00%. The current stock price (Po) is $49. Next year's dividend is expected to be $2.20, and it is expected to grow at a constant rate of 4% per year forever. The company's W.A.C.C. is ____%. Round your final answer to 2 decimal places


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  1. Tutorial # 00267405 Posted By: step4 Posted on: 05/04/2016 05:56 AM
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