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ABC has estimated the after-tax costs of debt and equitycapital for various proportions of debt in its capital structure(debt + equity):% of Debt Cost of Debt. Cost of Equity35. 5,4% 13,8%40. 5,6. 1445. 5,9. 14,350. 6,4. 14,7If ABC pays a current dividend of $1.00 and expects dividendsto grow at a constant rate of 7%, what is ABC’s stock price if itobtains its optimal capital structure?
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