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show your work 3) EE Inc. has a market capitalization of $17.8 million and book equlty of $1.2 million. The common stock has a required
show your work
3) EE Inc. has a market capitalization of $17.8 million and book equlty of $1.2 million. The common stock has a required return of 15.5%, and the dividend growth rate is 3% per year. The firm has 750,000 shares of stock outstanding. They have market value of debt of $12 million. The value of debt on the balance sheet is $11.8 million. The semiannual bonds have a coupon rate of 8% and a yield to maturity of 6%. The tax rate is 23%. There is no preferred stock. a) (1 point) What is the capital structure weight of debt? b) (2 points) What is the weighted average cost of capital Step by Step Solution
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