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EEC uses debt and common equity. It can borrow unlimited amount at rd = 8.5% as long as it finances at its target capital structure
EEC uses debt and common equity. It can borrow unlimited amount at rd = 8.5% as long as it finances at its target capital structure 25% debt and 75% common equity. Its last common stock dividend was $1.60 and expected to grow at a constant rate of 6%. EECs. EECs common stock is selling for $19 per share; its tax rate is 25%. Estimate EECs WACC.
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