Business, 31.10.2019 00:31 ritasolomon85

Johnson industries finances its projects with 40 percent debt, 10 percent preferred stock, and 50 percent common stock. · the company can issue bonds at a yield to maturity of 7.8 percent. · the cost of preferred stock is 7 percent. · the company's common stock currently sells for $29 a share. · the company's dividend has just paid $2.00 a share (d0 = $2.00), and is expected to grow at a constant rate of 8 percent per year. · assume that the flotation cost on debt and preferred stock is zero, and no new stock will be issued. · the company's tax rate is 30 percent. what is the company's weighted average cost of capital (wacc)? express your answer in percentage (without the % sign) and round it to two decimal places.

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Johnson industries finances its projects with 40 percent debt, 10 percent preferred stock, and 50 pe...