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Business, 09.12.2019 20:31 kylieweeks052704

The company estimates that it can issue debt at a rate of rd = 11%, and its tax rate is 40%. it can issue preferred stock that pays a constant dividend of $4 per year at $47 per share. also, its common stock currently sells for $30 per share; the next expected dividend, d1, is $3.75; and the dividend is expected to grow at a constant rate of 5% per year. the target capital structure consists of 75% common stock, 15% debt, and 10% preferred stock.1. what is the cost of each of the capital components? round your answers to two decimal places. a. cost of debt %b. cost of preferred stock %c. cost of retained earnings %2. what is adams' wacc? round your answer to two decimal places.

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The company estimates that it can issue debt at a rate of rd = 11%, and its tax rate is 40%. it can...
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