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Tweeks Coffee has a capital structure consisting of 30 percent debt and 70 percent common equity financing. The company has $400 million in net income
Tweeks Coffee has a capital structure consisting of 30 percent debt and 70 percent common equity financing. The company has $400 million in net income and plans to pay out 40 percent of their earnings as dividends. What is the maximum amount of new financing that the company can raise without selling new common stock?
Show work please using WACC equation
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