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An analyst has collected the following information regarding Christopher Co . : The company's capital structure is 7 0 percent equity and 3 0 percent
An analyst has collected the following information regarding Christopher Co:
The company's capital structure is percent equity and percent debt.
The yield to maturity on the company's bonds is percent.
The company's yearend dividend is forecasted to be $ a share.
The company expects that its dividend will grow at a constant rate of percent a year.
The company's stock price is $
The company's tax rate is percent.
The company anticipates that it will need to raise new common stock this year. Its investments bankers anticipate that the total flotation costs will equal percent of the amount issued.
Assume the company accounts for flotation costs by adjusting the cost of capital. Given this information, calculate the companys WACC:
a
b
c
d
e
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