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Ellis Inc. uses a D/E ratio of 0.8181 for all of its financing needs. Shares of the common stock sell at $43. The company expects
Ellis Inc. uses a D/E ratio of 0.8181 for all of its financing needs. Shares of the common stock sell at $43. The company expects to pay $1.30 in dividends next year and increase that amount by 3% annually. The bonds have a 5% coupon rate and a yield-to-maturity of 4.8%. The company has a beta of 1.26 and a 34% marginal tax rate. What is the WACC
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
