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Business, 01.07.2020 15:01 jasperzhouzihe3018

Assume that you are an intern with the Brayton Company, and you have collected the following data: The yield on the company's outstanding bonds is 7.75%; its tax rate is 25%; the next expected dividend is $0.65 a share; the dividend is expected to grow at a constant rate of 6.00% a year; the price of the stock is $15.00 per share; the flotation cost for selling new shares is F= 5%; and the target capital structure is 25% debt and 75% common equity. What is the firm's WACC, assuming it must issue new stock to finance its capital budget? a. 6.89%
b. 7.24%
c. 7.64%
d. 8.55%
e. 8.44%

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Assume that you are an intern with the Brayton Company, and you have collected the following data: T...
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