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Question 3 (1 point) A firm has 70% debt and 30% common equity. Its yield to maturity is 6% and tax rate is 20%.

Question 3 (1 point) A firm has 70% debt and 30% common equity. Its yield to maturity is 6% and tax rate is 20%. The current stock price is 10 and the last dividend just paid was $0.5. Dividend is expected to grow at 5%. What is WACC? 5.9% 7.5% 6.4% 4.2% Previous Page Next Page Page 3 of 15

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