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2. Calculate the weighted average cost of capital for a company given the following information: Price of the companys common stock: $30.04 Dividend just been
2. Calculate the weighted average cost of capital for a company given the following information:
Price of the companys common stock: $30.04
Dividend just been paid: $2.6
Expected perpetual constant growth rate: 4%
The company can borrow from its bank at 9% per year
The companys marginal tax rate: 35%
The market value of the companys assets is $160 million financed by $54.40 million in debt and the rest in equity
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