ABC has the following market value capital structure, shown below, which is considered to be optimal. The
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Question:
ABC has the following market value capital structure, shown below, which is considered to be optimal. The firm has no preferred stock. Debt $ Equity $ New bonds currently have a coupon rate and ABC's stock sells for $ per share. The expected growth rate in dividends is percent. The corporate tax rate is percent and the firm net income was $ million. Finally, the firm paid of its earning out as dividends.
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