Friday, April 22, 2016

WACC: Weighted Average Cost of Capital

An analyst has collected the following information regarding Christopher Co.:

• The company’s capital structure is 60% equity and 40% debt.
• 10-year bond is sold at 1325.20 with 14% coupon rate.
• The company’s year-end dividend is forecasted to be $1.50 a share.
• The c…

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