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Suppose that your company just paid a dividend of $1.2; the dividends are expected to grow at a constant rate of 3.5% indefinitely. Today's market

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Suppose that your company just paid a dividend of $1.2; the dividends are expected to grow at a constant rate of 3.5% indefinitely. Today's market priceishare is $15.50. Suppose also that your company has some bonds outstanding in the market selling for $896.85. The bonds have 12 years left to maturity, with 10% coupon rate with semi-annual payments and $1000 par value. If your company's capital structure is 35% debt and 65% equity, with the tax rate of 40% what is the WACC? 8.15% 9.92% 6.49% 9.08% 7.65%

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