### Determine weighted average cost of equity

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1. Calculate Company C's weighted average cost of equity, given the following information: (a) D0: \$2.50, (b) Current Stock Price: \$52.50, (c) Company's Constant Growth Rate: 6%, (d) Debt: \$23,000,000, (e) Equity: \$20,000,000, and (f) Preferred Stock: \$10,000,000.

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