Growth rate-maintain to satisfy the entire investors

Assignment Help Financial Management

Reference no: EM131552304

The following is your company's capital structure & other financial information:

Long-term debt: $400,000 @ 15% interest rate (before tax)

Equity: $600,000

Tax Rate: 40%

Beta of the Co. 1.5

The current yield rate of the 10-year Treasury Bond is 5%

Normal Risk Premium is 10%

What is the overall growth rate this company has to maintain to satisfy the entire investors (creditors & shareholders)? Please do not put "%" in your answer. Just put the number (for example, 10.0 for 10.0%)

Reference no: EM131552304

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