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Calculate the firm weighted average cost of capital

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Problem 1: A company has determined that its optimal capital structure consists of 58 percent debt and the rest is equity. Given the following information, calculate the firm's weighted average cost of capital.

kd = 7.6 %

Tax rate = 34 %

P0 = $ 24.85

Growth = 6.3 %D1 = $ 0.72

Show your answer to the nearest .1%

Reference no: EM132913833

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