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Managerial economics Assume the a firm pays 9.56% interest on its outstanding loan, it pays dividends in the amount of 10 HRK for each common

Managerial economics

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Assume the a firm pays 9.56% interest on its outstanding loan, it pays dividends in the amount of 10 HRK for each common stock which currently has market value of 125 HRK and the expected annual dividend growth is estimated at 6.5%. Corporate tax rate is 35%, and the firm is 70% equity financed. Determine the cost of debt, cost of equity and WACC. (6)

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