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General Lithograph Corporation uses no preferred stock. The firm's capital structure uses 34% debt (hint: the rest is equity). The marginal tax rate is 28.73% and the before-tax cost of debt is 3.68%. The firm expects to pay a dividend per share of $0.96 next year, and their dividend is expected to grow at 5.38% over the long-run. Their stock currently trades at $16.66 per share. What is General Lithograph's weighted average cost of capital (WACC)? Enter your answer without the "%", and with two decimal places (in other words, if you calculate 9.87%, then just enter 9.87). 8.25 margin of error +/- 0.05

General Lithograph Corporation uses no preferred stock. The firm's capital structure uses 34% debt (hint: the rest is equity). The marginal tax rate is 28.73% and the before-tax cost of debt is 3.68%. The firm expects to pay a dividend per share of $0.96 next year, and their dividend is expected to grow at 5.38% over the long-run. Their stock currently trades at $16.66 per share. What is General Lithograph's weighted average cost of capital (WACC)? Enter your answer without the "%", and with two decimal places (in other words, if you calculate 9.87%, then just enter 9.87). 8.25 margin of error +/- 0.05

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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General Lithograph Corporation uses no preferred stock. The firm's capital structure uses 34% debt (hint: the rest is equity). The marginal tax rate is 28.73% and the before-tax cost of debt is 3.68%. The firm expects to pay a dividend per share of $0.96 next year, and their dividend is expected to grow at 5.38% over the long-run. Their stock currently trades at $16.66 per share. What is General Lithograph's weighted average cost of capital (WACC)? Enter your answer without the "%", and with two decimal places (in other words, if you calculate 9.87%, then just enter 9.87). 8.25 margin of error +/- 0.05
Transcribed Image Text:General Lithograph Corporation uses no preferred stock. The firm's capital structure uses 34% debt (hint: the rest is equity). The marginal tax rate is 28.73% and the before-tax cost of debt is 3.68%. The firm expects to pay a dividend per share of $0.96 next year, and their dividend is expected to grow at 5.38% over the long-run. Their stock currently trades at $16.66 per share. What is General Lithograph's weighted average cost of capital (WACC)? Enter your answer without the "%", and with two decimal places (in other words, if you calculate 9.87%, then just enter 9.87). 8.25 margin of error +/- 0.05
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