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Assume that the future dividend (D) and its growth rate of the company is $1.55 and 3.5%, respectively. If the current stock price of the

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Assume that the future dividend (D) and its growth rate of the company is $1.55 and 3.5%, respectively. If the current stock price of the company is $15, what is the cost of equity for the company? O 13.83% O 15.1% 14.2% O 12.93% Question 8 Consider an enterprise with a capital structure consisting of 70% debt and 30% equity. If you use the costs of debt and equity of the company from Question 6 and 7, what would be the company's WACC? O 7.12% 8.09% 6.69% 5 pts 6.58% A nominal risk-free rate is currently 3.5%. A broker at INV Securities, has given you the following estimates of current interest rate premiums: Inflation Premium: 2%, Liquidity Risk Premium 1.5% , Maturity Risk Premium 3%, and Default Risk Premium 1.5%. Based on these data, what are the rates of short-term corporate bonds? 8.5% 8% O 6.5% O 7.5%

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