Examlex

Solved

Plasti-Tech Inc

question 42

Multiple Choice

Plasti-tech Inc.is financed 60% with equity and 40% with debt.Currently,its debt has a pretax interest rate of 12%.Plasti-tech's common stock trades at $15.00 per share and its most recent dividend was $1.00.Future dividends are expected grow by 4%.If the tax rate is 34%,what is Plasti-tech's WACC?


Definitions:

Performance Level

The degree to which an individual or organization meets specified goals or standards.

Vicarious Learning

The process of learning by observing the actions and outcomes of others' behaviors.

Re-create Behavior

The act of deliberately imitating or replicating a previously observed action or pattern of actions.

Observe

The action of monitoring or taking notice of something, often leading to insights or data collection without directly interfering.

Related Questions