Expected to grow at a constant rate

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Marie Corp. has $1400 in debt outstanding and $2900 in common stock (both amounts are market values). Its marginal tax rate is 35%. Marie's semiannual bonds have a YTM of 8.6%. The current stock price is $47. Next year's dividend is expected to be $2.50, and it is expected to grow at a constant rate of 5% per year forever.

The company's WACC is ________%. Answer in percentage, rounded to two decimal places.

Reference no: EM131044529

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