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Quinian Enterprise stock trades for $57 per share. Is it expected to pay a $1.65 dividend at year end, and the dividend is expected to
Quinian Enterprise stock trades for $57 per share. Is it expected to pay a $1.65 dividend at year end, and the dividend is expected to grow at a constant 7% a year. The before tax cost of debt is 7%, and the tax rate is 30%. The target capital structure consists of 50% debt and 50% common equity. What is the company WACC if all the equity used is from reinvested earnings?
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