Calculate the WACC using the dividend discount model

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Reference no: EM131509170

Calculate the WACC using the dividend discount model: Please show all work.

Before-tax cost of new debt 9%

Tax rate 40%

Target debt-to-equity ratio 0.8

Stock price $30

Next year’s dividend $1.5

Estimated Growth rate 8%

Reference no: EM131509170

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