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Business, 24.03.2020 23:12 bubblzthechicken

Avido Inc. is expected to pay a $2.00 dividend at year end (D1 = $2.00), the dividend is expected to grow at a constant rate of 4.50% a year, and the common stock currently sells for $47.00 a share. The before-tax cost of debt is 6.50%, and the tax rate is 40%. The target capital structure consists of 45% debt and 55% common equity. What is the company’s WACC if all the equity used is from retained earnings? 5.98% 6.57% 7.22% 6.91% 5.77%

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Avido Inc. is expected to pay a $2.00 dividend at year end (D1 = $2.00), the dividend is expected to...
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