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The Buccaneer Company was recently formed to manufacture a new product It has the following capital structure: The company is expected to pay a $2
The Buccaneer Company was recently formed to manufacture a new product It has the following capital structure: The company is expected to pay a $2 dividend next year The dividend growth rate is 10%, the required rate of return on equity funds is 12%, and their common stock is presently selling for $50 per share Assume a marginal tax rate of 40% Compute the weighted-average cost of capital
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