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1 . Company A ' s capital structure is 3 5 % debt, 1 0 % preferred equity, and 5 5 % common equity. The

1. Company A's capital structure is 35% debt, 10% preferred equity, and 55% common equity. The yield to maturity on bonds is 6.50%, the cost of preferred equity is 6.00%, the cost of common equity is 10.50%, and the tax rate is 25%. What is Company A's WACC?
2. stock has a required rate of return of 11.50%, and it sells for $48.00 per share. Its dividend is expected to grow at a constant rate of 7.00%. What was the last dividend paid by stock a, d0? answer just the dollar amount without the + or - sign. round to two decimal places.
3. abc inc. just paid a dividend of d0= $4.75. analysts expect the company's dividend to grow by 30% this year, by 10% in year 2, and at a constant rate of 5% in year 3 and thereafter. The required return on this stock is 9.00%. What is the best estimate of the stocks current market value?

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