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Sorensen Systems Inc. is expected to pay a $2.50 dividend at your end (D - $2,50), the dividend is expected to grow at a constant

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Sorensen Systems Inc. is expected to pay a $2.50 dividend at your end (D - $2,50), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $37.50 a share. The before-tax cost of debt is 7.30%, and the tax rate is 40%. The target capital structure consists of 45% debt and 55% common equity. What is the companys WACC Hf all the equity used is from retained earnings? Do not round your intermediate calculations 7 13 a 9.94% 19 b. 8.72% c. 8,80% Fini d. 7.58% e. 9.41% Tim

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