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6 pts Question 21 You have been given the following information regarding Charlie's Chocolate Company: The firm's marginal tax rate is 20% The current price

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6 pts Question 21 You have been given the following information regarding Charlie's Chocolate Company: The firm's marginal tax rate is 20% The current price of Charlie's 7% coupon, semi-annual payment, bonds with 15 years to maturity is $1,050 Charlie's common stock is currently selling for $100 per share. Last years dividend was $6.00, and dividends are expected to grow at a constant rate of 6%. Charlie would incur flotation costs of 3% on a new issue of common stock . A. Calculate the after-tax cost of debt and cost of equity. B. Calculate the weighted average cost of capital assuming their target capital structure is 50% debt and 50% equity

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