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Gator Services' financial analyst must determine the firm's WACC for use in capital budgeting. She as gathered the following relevant data: Target capital structure: debt

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Gator Services' financial analyst must determine the firm's WACC for use in capital budgeting. She as gathered the following relevant data: Target capital structure: debt = 30%, equity = 70% Interest rate on new debt: 7% Current stock price = $26.40; last dividend was $2.00 Constant growth rate is 5%; tax rate is 40%. Find: Gator Services' WACC

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