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Intro Munich Re Inc. is expected to pay a dividend of $4.82 in one year, which is expected to grow by 4% a year forever.
Intro
Munich Re Inc. is expected to pay a dividend of $4.82 in one year, which is expected to grow by 4% a year forever. The stock currently sells for $79 a share.
The before-tax cost of debt is 7% and the tax rate is 34%.
The target capital structure consists of 40% debt and 60% equity.
Attempt 4/10 for 7 pts.
Part 1
What is the company's weighted average cost of capital?
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