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10. With the market and company data below calculate this company's WACC: MARKET DATA: U.S. Treasury Bill rate: 5.0% 5% Stock market total return: 13%.

10. With the market and company data below calculate this company's WACC:
MARKET DATA:
U.S. Treasury Bill rate: 5.0% 5%
Stock market total return: 13%. 13%
COMPANY DATA:
Dividend growth rate: 4%
Outstanding bond YTM: 6%
Next years expected dividend: $1.50
Marginal tax rate: 40%
Average tax rate: 30%
Shares outstanding: 100,000
Beta: 0.80
Debt / capital ratio: 20%
A. Cost of Debt:
B. Cost of Equity:
C. WACC (values):
Cost Wt
Debt
Equity
WACC

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