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A firm has 80% debt and 20% common equity. Its yield to maturity is 6% and tax rate is 20%. The current stock price is

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A firm has 80% debt and 20% common equity. Its yield to maturity is 6% and tax rate is 20%. The current stock price is 10 and the last dividend just paid was $0.5. Dividend is expected to grow at 5%. What is WACC? 4.20%6.91%7.28%5.89% Page 13 of 25

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