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The following problem will be used to answer the next question. The Doug and Bob Corporation is calculating its WACC. Its 2 0 0 ,
The following problem will be used to answer the next question.
The Doug and Bob Corporation is calculating its WACC. Its bonds have a coupon, paid semiannually, a current maturity of years, and sell for a quoted price of The firm's shares of preferred stock par $ pays a annual dividend and currently sells for $ Doug and Bob is a constant growth firm which just paid a dividend of $ sells for $ per share; it has shares outstanding, and the common stock has an estimated growth rate of The firm's beta is and the firm's marginal tax rate is The return on the market is and the risk free rate is
What is the firm's aftertax cost of equity financing if we use the discounted cash flow approach Gordon Growth model
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