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Author Question: The market value weights are preferred when calculating a firm's weighted average cost of capital. ... (Read 64 times)

Kikoku

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on: Jul 10, 2018
The market value weights are preferred when calculating a firm's weighted average cost of capital.
 
  What will be an ideal response?

Question 2

Crandle's common stock is currently selling for 79.00. It just paid a dividend of 4.60 and
  dividends are expected to grow at a rate of 5 indefinitely. What is the required rate of return on
  Crandle's stock?
 
  A) 14.21 B) 12.2 C) 11.76 D) 11.11
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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asware1

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Reply #1 on: Jul 10, 2018
Answer to Question 1

+ .049 = 13.25

Answer to Question 2

D


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