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3 . In Question 3 , suppose the most recent dividend was $ 3 . 2 5 and the dividend growth rate is 5 %

3 .

In Question

3,

suppose the most recent dividend was $

3.25

and the dividend growth rate is

5 % .

Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is

21 % .

What is the company

s WACC?

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