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Allison Engines Corporation has established a target capital structure of 40 percent debt and 60 percent common equity. The current market price of the firm's

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Allison Engines Corporation has established a target capital structure of 40 percent debt and 60 percent common equity. The current market price of the firm's stock is PO = $42.7; its last dividend was DO = $5.7, and its expected dividend growth rate is 6 percent. What will Allison's marginal cost of retained earnings, rs, be? 20.15% O 18.15% O 19.15% O 17.15% O 16.15% Which of the following capital components needs to be adjusted for taxes? Preferred Stock Common Stock Debt Notes Payable Debt and Preferred Stock

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