dreamers inc has 230,000 shares of common stock outstanding at a market price of $40...
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dreamers inc has 230,000 shares of common stock outstanding at a market price of $40 a share. next quarter, dreamers is expected to pay an annual dividend in the amount of $1.80 per share. the dividend growth rate is 3 percent. dreamer also has 8000 bonds outstanding with a face value of $1,000 per bond. the bonds are selling at 102 percent of face value and has a yield to maturity of 6.50 percent. the company's tax rate is 35 percent. what is dreamers weighted average cost of capital?
answer is 6.0 percent, but i don't know how they got it!
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You can see the logs in the Dashboard.