Debt outstanding-expected to grow at constant rate

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Reference no: EM13937530

Marie Corp. has $1400 in debt outstanding (market value) and $2900 in common stock. Its marginal tax rate is 35%. Marie's semi-annual bonds have a YTM of 8.6%. The current stock price is $47. Next year's dividend is expected to be $2.50, and it is expected to grow at a constant rate of 5% per year forever. The company's W.A.C.C. is ______%.

Reference no: EM13937530

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