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The ABC Company has a cost of equity of 24.69 percent, a before-tax cost of debt of 4.47 percent, and a tax rate of 27 percent. What is the firm’s weighted average cost of capital if the proportion of debt is 25%?

B) Suppose a company is expected to pay a dividend of $3.08 next year. The dividend is expected to grow at 7.86% each year. If the stock is currently selling for $178.98, what is the required rate of return on the stock?

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C) ABC, Inc.’s target capital structure is 20% debt, 35% preferred, and 45% common equity. The before-tax cost of debt (RD) is 7.73%, the cost of preferred stock (RP) is 10.87%, and the cost of common stock (RE) is 24.83%. If the tax rate is 26%. What is the WACC?

D) ABC, Inc., has 1,336 shares of common stock outstanding at a price of $427 a share. They also have 1,400 shares of preferred stock outstanding at a price of $58 a share. There are 171 bonds outstanding that are priced at $1,072. What is the weight of bonds in the capital structure?

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