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Business, 18.11.2019 23:31 abby4902

Palencia paints corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. its before-tax cost of debt is 8%, and its marginal tax rate is 40%. the current stock price is p0 5 $22.00. the last dividend was d0 5 $2.25, and it is expected to grow at a 5% constant rate. what is its cost of common equity and its wacc?

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Palencia paints corporation has a target capital structure of 35% debt and 65% common equity, with n...
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