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(10 pts) Tysseland Company's present market value capital structure shown 8. below is optimal. There is no short-term debt: Capital Component Market value Debt 30,000,000

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(10 pts) Tysseland Company's present market value capital structure shown 8. below is optimal. There is no short-term debt: Capital Component Market value Debt 30,000,000 90,000,000 Common equity Bonds have an 8% coupon rate, and they will be sold at par. Common stock is currently selling at $30 a share. The stockholder's required rate of return is estimated to be 12%, consisting of a dividend yield of 4% and an expected growth rate of 8%. (The next expected dividend is $1.20, so the dividend yield is $1.20/$30 = 4%) T he marginal tax rate is 40%, what is Tysseland's WACC

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