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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 and its tax rate is It can issue preferred stock that pays a constant dividend of $ per year at $ per share. Also, its common stock currently sells for $ per share; the next expected dividend, D is $; and the dividend is expected to grow at a constant rate of per year. The target capital structure consists of common stock, debt, and 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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