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Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost of capital for Stone Corp given the
Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost of capital for Stone Corp given the followng additional information: Bond coupon rate 14%; Bond yield to maturity 10%; Dividend expected $5; Price common $100; Growth rate 8%; Corporate tax rate 30% options: 1. less than 9.5% 2. more than 9.5% and less than 10.25% 3. more than 10.25% and less than 11% 4. more than 11%
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