A firm pays a 480 dividend at the end of year one D1 has a s

A firm pays a $4.80 dividend at the end of year one (D1), has a stock price of $80, and a constant growth rate (g) of 5 percent. Compute the required rate of return (Ke). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Rate of return %_____

                                                     What is the rate of return %?

Calculate the aftertax cost of debt under each of the following conditions. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) Yield Corporate Aftertax Cost of Tax Rate Debt:

_______%    

Solution