Question: In Problem 12, suppose the most recent dividend was $2.85 and the dividend growth rate is 6 percent. Assume that the overall cost of debt

In Problem 12, suppose the most recent dividend was $2.85 and the dividend growth rate is 6 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 35 percent. What is the company's WACC?

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