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A company has a target capital structure of 35% debt and 65% equity, with no preffered stock. The before tax cost of debt is 5.5%

A company has a target capital structure of 35% debt and 65% equity, with no preffered stock. The before tax cost of debt is 5.5% and its tax rate is 21% The current stock price is $45.5 The las dividend was $3.15 and it is expected to grow at 3.5% constant rate What is the cost of common equity and the WACC?

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