If the firms dividend growth rate is 8 and its current


1. A firm has a WACC of 12%. It is financed with 40% debt and 60% equity. The firm's cost of debt is 10% and its tax rate is 40%. If the firm's dividend growth rate is 8% and its current stock price is $40, what is the value of the next dividend the firm is expected to pay?

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Accounting Basics: If the firms dividend growth rate is 8 and its current
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