part A The Drogon Co. just issued a dividend of $2.51 per share on its common stock....

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Finance

part A
The Drogon Co. just issued a dividend of $2.51 per share on itscommon stock. The company is expected to maintain a constant 7percent growth rate in its dividends indefinitely. If the stocksells for $60 a share, what is the company's cost of equity?
Part B
Lannister Manufacturing has a target debt-equity ratio of 0.65.Its cost of equity is 16 percent, and its cost of debt is 12percent. If the tax rate is 35 percent, what is the company'sWACC?
Part C
Fama's Llamas has a weighted average cost of capital of 12.5percent. The company's cost of equity is 16 percent, and its pretaxcost of debt is 7.5 percent. The tax rate is 34 percent. What isthe company's target debt-equity ratio?

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part AThe Drogon Co. just issued a dividend of $2.51 per share on itscommon stock. The company is expected to maintain a constant 7percent growth rate in its dividends indefinitely. If the stocksells for $60 a share, what is the company's cost of equity?Part BLannister Manufacturing has a target debt-equity ratio of 0.65.Its cost of equity is 16 percent, and its cost of debt is 12percent. If the tax rate is 35 percent, what is the company'sWACC?Part CFama's Llamas has a weighted average cost of capital of 12.5percent. The company's cost of equity is 16 percent, and its pretaxcost of debt is 7.5 percent. The tax rate is 34 percent. What isthe company's target debt-equity ratio?