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Calculate the WACC using the dividend discount model: Please show all work. Before-tax cost of new debt 9% Tax rate 40% Target debt-to-equity ratio 0.8
Calculate the WACC using the dividend discount model: Please show all work.
Before-tax cost of new debt | 9% |
Tax rate | 40% |
Target debt-to-equity ratio | 0.8 |
Stock price | $30 |
Next years dividend | $1.5 |
Estimated Growth rate | 8% |
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