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Business, 18.12.2019 03:31 edgarlimon2000

The gallagher co. has a target capital structure of 65% debt and the remainder common equity.  gallagher’s cost of debt is 8.5%, its tax rate is 35%, its most recent dividend was $2.00 and that dividend has been growing at 3.5% annually and is expected to continue that growth.  the current price of gallagher stock is $52.50 per share.  flotation costs on new equity are 8.5% and gallagher has retained earnings of $3.5 million.  what is the wacc if gallagher's total capital expenditure is expected to be $8.5 million?

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The gallagher co. has a target capital structure of 65% debt and the remainder common equity. ...

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