问题如下:
TAT Company has a target capital structure of 30% debt and 70% equity. And the company's marginal tax rate is 20%. The information about the bond and the equity is shown in the following tables. Using the dividend discount model, what's the cost of equity?
选项:
A.9%.
B.16%.
C.19%.
解释:
B is correct.
Using the dividend discount model: D1=D0(1+g)=3*(1.07)=3.21;kce=(D1/P0)+g=(3.21/36)+0.07=16%.
TAT Company has a target capital structure of 30% debt and 70% equity.,结果不用乘以70%吗?