The following data is regarding the Link Company:
A target debt/equity ratio of 0.5
Bonds are currently yielding 10%
Link is a constant growth firm that just paid a dividend of $3.00
Stock sells for $31.50 per share, and has a growth rate of 5%
Marginal tax rate is 40%
What is Link’s aftertax cost of capital?
A) 12.0%.
B) 10.5%.
C) 12.5%. |
发表于 2013-4-8 10:46
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