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Immobila Corp. is financed 60% with equity and 40% with debt. Currently, its debt has a before-tax yield to maturity of 10%. Immobila's common stock
Immobila Corp. is financed 60% with equity and 40% with debt. Currently, its debt has a before-tax yield to maturity of 10%. Immobila's common stock trades at $15 per share and its most recent dividend paid was $1.00. Future dividends are expected grow by 5%. If the tax rate is 35%, what is Immobila's WACC?
A. 10.7%
B. 9.80%
C. 9.60%
D. 8.70%
E. 8.57%
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