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The company estimates that it can issue debt at a rate of rd = 9 % , and its tax rate is 3 0 %

The company estimates that it can issue debt at a rate of rd =9%, and its tax rate is 30%. It can issue preferred stock that pays a constant dividend of $5 per year at $57 per share. Also, its common stock currently sells for $40 per share; the next expected dividend, D1, is $3.75; and the dividend is expected to grow at a constant rate of 7% per year. The target capital structure consists of 75% common stock, 15% debt, and 10% preferred stock. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
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