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Business, 13.12.2019 02:31 kenaygardel

Your firm recently paid a dividend of $4 to common stockholders. dividends are expected to grow at 8% per year for the foreseeable future. the current stock price is $54. a $15 million bank line of credit is available with an interest rate of 9%. the firm's tax rate is 34%. what is the firm’s cost of capital if their capital structure consists of 60% equity and 40% bank loans?

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