cost of capital, Finance Basics

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capital structure of 38% common stock and 62% debt. A debt issue of 1000 par value, 5.6% bonds that mature in 15 years and pay annual interest will sell for $979.dividends have grown at the rate of 4.6% per year and are expected to continue to do so for the foreseeable future. What is the cost of capital where the tax rate is 30%?

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