A firm is planning an expansion project they will generate


A firm is planning an expansion project. They will generate funds with a mix of 50% bonds, and 50% stock. The bonds will pay 8.0%/year. The stock pays a $7.70 dividend each year and is currently valued at $380 per share. The company wants the stock to continue increasing in value at a rate of 4% per year. They pay 35% income tax on all of their earnings. What is the WACC?

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Financial Management: A firm is planning an expansion project they will generate
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