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P Corp. has a target capital structure of 40 percent debt and 60 percent equity. The yield to maturity on the companys outstanding bonds is

P Corp. has a target capital structure of 40 percent debt and 60 percent equity. The yield to maturity on the companys outstanding bonds is 9 percent, and companys tax rate is 40 percent, WACC as 9.96 percent.

What is the companys cost of equity?

If the company will pay a constant annual dividend of $2.20 a share, what is the Ps current stock price?

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