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Business, 04.11.2019 22:31 tareas7009

Quinlan enterprises stock trades for $52.50 per share. it is expected to pay a $2.50 dividend at year end (d1 = $2.50), and the dividend is expected to grow at a constant rate of 5.50% a year. the before-tax cost of debt is 7.50%, and the tax rate is 40%. the target capital structure consists of 45% debt and 55% common equity. what is the company's wacc if all the equity used is from reinvested earnings? a. 7.07%b. 7.36%c. 7.67%d. 7.98%e. 8.29%

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Quinlan enterprises stock trades for $52.50 per share. it is expected to pay a $2.50 dividend at yea...
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