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answer with necessary solution 1. Joy Corp. wants to calculate its weighted average cost of
capital. The company has no sufficient retained earnings to fund the equity portion of the capital
budget. Additional information revealed the following: - Dividend paid recently .......P2.00 per
share - Growth rate - 6% * Stock price ............... P 32.00 per share "Flotation cost 10% - Bond
YTM ................ 9% - Tax rate 40% - Target capital structure: 75% Equity; 25% Debt What is
the company's WACC?

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answer with necessary solution 1. Joy Corp. wants to calculate its .pdf

  • 1. answer with necessary solution 1. Joy Corp. wants to calculate its weighted average cost of capital. The company has no sufficient retained earnings to fund the equity portion of the capital budget. Additional information revealed the following: - Dividend paid recently .......P2.00 per share - Growth rate - 6% * Stock price ............... P 32.00 per share "Flotation cost 10% - Bond YTM ................ 9% - Tax rate 40% - Target capital structure: 75% Equity; 25% Debt What is the company's WACC?