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Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the company's outstanding bonds

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Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the company's outstanding bonds is 7-45%, its tax rate is 25%, the next expected dividend is $0.65 a share the dividend is expected to grow at a constant rate of 6.00% a year, the price of the stock Is $18.00 per share, the flotation cost for selling new shares is F = 10%, and the target capital structure is 35% debt and 65% common equity. What is the firm's WAOC, assuming it must inste new stock to finance its capital budget? 29.12 b. 8.62% O c.7.99 7.44 3.66

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