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In March of 2016 the capital structure of IT Solutions (measured in book and market values) appeared as follows: a) Calculate the appropriate weights of

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In March of 2016 the capital structure of IT Solutions (measured in book and market values) appeared as follows: a) Calculate the appropriate weights of debt and equity in the capital structure of the company. b) Company's' common stock currently sells for $12.00 per share. The firm pays dividends annually and expects dividends to grow at a constant rate of 3% indefinitely. The most recent annual dividend per share, paid yesterday, is $1.00. Calculate the cost of common equity

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