What is the after-tax cost of debt in weighted average cost

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Reference no: EM131625093

1. If expected dividends grow at 2% and the appropriate discount rate is 4%, what is the value of a stock with an expected dividend of $3.45?

2. The coupon rate on a debt issue is 7%. If the yield to maturity on the debt is 9%, what is the after-tax cost of debt in the weighted average cost of capital if the firm's tax rate is 32%?

Reference no: EM131625093

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