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Assume that you are the financial analyst at Vanderheiden Inc., and you have collected the following data: The yield on the company's outstanding bonds is
Assume that you are the financial analyst at Vanderheiden Inc., and you have collected the following data: The yield on the company's outstanding bonds is 7.75%, 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 $14.00 per share, and the target capital structure is 45% debt and 55% common equity. What is the firm's weighted average cost of capital (WACC), assuming it must issue new stock to finance its capital budget? O 9.96% O 7.98% O 9.34% 8.47% 0 13.75%
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