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SHOW YOUR WORK BeeHive Inc. is expected to pay a $2.30 dividend at year end (D1=$2.30), the dividend is expected to grow at a constant
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BeeHive Inc. is expected to pay a $2.30 dividend at year end (D1=$2.30), the dividend is expected to grow at a constant rate of 3.60% a year, and the common stock currently sells for $22.70 a share. The before-tax cost of debt is 6.80%, and the tax rate is 30%. The target capital structure consists of 35% debt and 65% common equity. What is the company's WACC? 9.89% 8.42% 10.59% (D) 11.33% 12.12%Step by Step Solution
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