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kindly help me out I have 20mins I will give you thumbs up A firm estimates that it can issue new debt at a rate
kindly help me out I have 20mins I will give you thumbs up
A firm estimates that it can issue new debt at a rate of 13.75%, and its tax rate will stay at 40%. They can issue new shares of preferred stock at a cost of 12.73%.. Their common stock currently sells for $35 per share, is expected to pay a dividend of $2.50 next year and the constant dividend growth rate is expected to be 7%. Their target capital structure is 50% common stock, 10% preferred stock and 40% debt. What is their WACC using retained earnings? 11.89% 10.79% 11.64% 10.54%Step by Step Solution
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