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4. Use the following information for EBG, Inc. and estimate the cost of capital. First, answer the questions as noted below: Coupon (Interest) rate on

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4. Use the following information for EBG, Inc. and estimate the cost of capital. First, answer the questions as noted below: Coupon (Interest) rate on bonds 7% Tax rate 35% Dividend $2 Price of the common stock $60 3% Growth rate of dividends Debt ratio 55% a. What is the cost of debt? b. What is the cost of equity? c. What are the weights for debt and equity? d. What is the weighted average cost of capital

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