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10 points Save Assume a firm that pays a dividend of $2.1 one year from today, the growth rate dividend is expected to be 7.4

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10 points Save Assume a firm that pays a dividend of $2.1 one year from today, the growth rate dividend is expected to be 7.4 percent forever, then what is the cost of equity capital if the price of its common shares is currently $45? 12% 10% Oo, 11% d9% What is the present value of the tax savings in perpetuity for a firm that plans to issue $5,000,000 worth of debt at a yield to maturity of 12% if the marginal corporate tax rate is 40%? $5,000,000 $240,000 c. $2,000,000 $600,000

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