Using the following information about Drew Co. Inc. and the market (SPY), what is the...
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Finance
Using the following information about Drew Co. Inc. and the market (SPY), what is the Weighted Average Cost of Capital for DCI? Please answer as a % without the % sign.
Drew Co. Inc
DCI Stock Price
# shares Outstanding
Corporate Tax Rate =
Risk-Free Rate
80.80
250,000
40.00%
3.00%
Par Value
Mkt Price
(Quoted % of
Par)
50.00
70.00
10 yr Zero Coupon Bond
20 Yr (semi-annual,) Bond
Coupon Rate of 20yr bond
Preferred Shares
Pref. Payment Rate
Stock Returns
Year
1
2
3
4
10,000,000
10,000,000
5.00%
10,000,000
12.00%
DOL
16.0%
15.0%
1.0%
6.0%
131.00
SPY
11.0%
10.0%
4.0%
3.0%
Using the following information about Drew Co. Inc. and the market (SPY), what is the Weighted Average Cost of Capital for DCh Please answer as a \% without the % sign
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