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The following data is regarding the Link Company: A target debt / equity ratio of 0 . 5 Bonds are currently yielding 1 2 %

The following data is regarding the Link Company:

A target debt

/

equity ratio of

0.5

Bonds are currently yielding

12 %

Link is a constant growth firm that just paid a dividend of $

2.00

Stock sells for $

31.50

per share, and has a growth rate of

5 %

Marginal tax rate is

40 %

What is Link's WACC?

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