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Find the cost of internal equity; if the value of the common stock today is $75, the stock just paid $3.60 this year. The growth

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Find the cost of internal equity; if the value of the common stock today is $75, the stock just paid $3.60 this year. The growth of the dividend is expected to be 5% for the foreseeable future. The current risk free rate is 2.5%, the systematic (Beta) is 0.95, expected return on the market is 11%, and yield to maturity of high rated bonds is 7% D WACC = p + *0 (1 -1) + b A PRET " +7 P D+P+ + DE 1 E TE D E + Calculate WACC

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