WACC-and-Corporate-investment

WACC-and-Corporate-investment | savvyessaywriters.org

In order to get the correct Weighted cost of capital, you must calculate the cast of each capital

  • The cost of debt is the yield on the debt times 1 minus the tax rate
  • The cost of common stock:

Need to use the dividend discount model which is Dividend/Stock Price plus the Dividend Growth Rate

 

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