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Consider the following information for Apple Inc., - Stock Price = $168 - Current Dividend = $2.50 - Expected growth rate = 3% - Debt/Equity

Consider the following information for Apple Inc.,

- Stock Price = $168

- Current Dividend = $2.50

- Expected growth rate = 3%

- Debt/Equity Ratio = 1

- Effective tax rate = 25%

- Before-tax cost of debt = 3.5%

Estimate the cost of capital for Apple. PLEASE SHOW YOUR WORK

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