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The yield to maturity on Moudy's bond is 9 percent. Moudy Company's expected dividend at the end of the year is $180 on its common

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The yield to maturity on Moudy's bond is 9 percent. Moudy Company's expected dividend at the end of the year is $180 on its common stock and this dividend is expected to grow at a constant rate of 6% forever. The company is going to issue new common stock at a price of $40 per share with a $2 flotation cost. This company has a marginal tax rate of 30% What is the weighted average cost of capital (WACC) of Moudy. If the capital structure is made up of 30 percent debt and 70 percent common equity? a 5.0% 6.52% c 5.8% Od 4.7% 4.5%

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