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Use the following information to answer question 7 through 9: Bloop Inc. has a target capital structure of 30% of debt and 70% in common

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Use the following information to answer question 7 through 9: Bloop Inc. has a target capital structure of 30% of debt and 70% in common equity. The firm has no preferred stock. Bloop's before-tax (pretax) cost of debt is 12% and its marginal tax rate is 30%. The beta of Bloop's common equity is 1.00, the market risk premium (MRP) is 6% and the U.S. risk-free rate is 5%. Bloop's common stock is currently trading at $35.00 per share and the next dividend to be paid (D1) is $3.50 per share. Future dividends are expected to grow at g=5%. If the cost of equity of Bloop Inc were 13%, what is the firm's Weighted Average Cost of Capital (WACC)? O 11.62% O 10.22% 14.28% O 19.42%

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