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An analyst has collected the following information regarding Christopher Healthcare: - The

An analyst has collected the following information regarding Christopher Healthcare: - The

An analyst has collected the following information regarding Christopher Healthcare: - The companyAc€?cs capital structure is 70 percent equity, 30 percent debt. - The yield to maturity on the companyAc€?cs bonds is 9 percent. - The companyAc€?cs year-end dividend is forecasted to be $0.80 a share. - The company expects that its dividend will grow at a constant rate of 9 percent a year. - The companyAc€?cs stock price is $25. - The companyAc€?cs tax rate is 40 percent. - The company anticipates that it will need to raise new common stock this year. Its investment bankers anticipate that the total flotation cost will equal 10 percent of the amount issued. Assume the company accounts for flotation costs by adjusting the cost of capital. Given this information, calculate the companyAc€?cs CCC.

Abhinav 02-Dec-2019

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