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Berger Paints Corporation has a target capital structure of 35% debt and 65% common equity. Its before tax cost of debt is 9% and the

Berger Paints Corporation has a target capital structure of 35% debt and 65% common equity. Its before tax cost of debt is 9% and the marginal tax rate is 30%. The companys stock is currently selling at $23 per share and the last dividend was $3. If dividends are expected to grow at a constant rate of 5%, what is the companys cost of common equity and WACC

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