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General Lithograph Corporation uses no preferred stock. Their capital structure uses 65% debt (hint: the rest is equity). Their marginal tax rate is 20.19%. Their
General Lithograph Corporation uses no preferred stock. Their capital structure uses 65% debt (hint: the rest is equity). Their marginal tax rate is 20.19%. Their before-tax cost of debt is 3.46%. General Lithograph's stock is expected to pay a dividend per share of $1.63 next year, and their dividend is expected to grow at 3.5% over the long-run. Their stock currently trades at $83.59 per share. What is General Lithograph's weighted average cost of capital (WACC)?
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