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Given below is the yield to maturity on a company's outstanding bonds, its tax rate, and the next expected dividend Div. The dividend is expected
Given below is the yield to maturity on a company's outstanding bonds, its tax rate, and the next expected dividend Div. The dividend is expected to grow at a constant rate of g% per year, the price of the stock is Poi the flotation cost for selling new shares is F%, and the target capital structure is we of debt and the remainder as common equity. Determine the firm's WACC using retained earnings (WACC) and the WACC assuming it must issue new stock (WACC2). YTM 5.00% T 19.50% Divi $1.120 0.50% Po $28.000 f 10.00% wa 45.00% WACC WACC2
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