Question: Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost of capital for the company given the
Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost of capital for the company given the following add info.
Bond coupon rate: 8%
Bond yield to maturity: 5%
Dividend, expected: $5
Price, common: $80
Growth rate: 5%
corporate tax rate: 21%
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