Company has determined that its optimal capital structure


A company has determined that its optimal capital structure consists of 40 percent debt and 60 percent equity. Given the following information, calculate the firm's weighted average cost of capital. Cost of Debt = 5.5%, Tax rate = 40%, Current Stock Price = $26.36, Long Run Growth rate = 5.1%, Next Year's Dividend = $1.83.

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Financial Management: Company has determined that its optimal capital structure
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