Calculate weighted average cost of capital for stone corp

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Reference no: EM13881897

Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost of capital for stone corp. given the following information:

Bond coupon rate 8%

Bond yield 6%

Dividend expected $5

Price common $80

Growth rate 5%

Corporate tax rate 30%

Reference no: EM13881897

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