Question: = Carson uses debt and common equity. It can borrow unlimited amount at rd = 9% as long as it finances at its target capital

= Carson uses debt and common equity. It can borrow unlimited

= Carson uses debt and common equity. It can borrow unlimited amount at rd = 9% as long as it finances at its target capital structure - 25% debt and 75% common equity. Its last common stock dividend was $1.50. Dividend for this year is expected to be $1.59 and will grow at the same constant rate in the future. Its common stock is selling for $25 per share; its tax rate is 25%. Estimate Carson's WACC. 12.33% 10.25% 12.17% O 11.65% 10.96%

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