Find the tax rate of corvallis

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Corvallis Corporation stockholders expect a growth rate of 4% in the company, and a dividend of $2.50 next year. The WACC of Corvallis is 11.5%. There are 5 million shares of the common stock, selling at $25 per share. The company also has $60 million face value 9% bonds, which will be due after 7 years. The bonds are selling at par. Find the tax rate of Corvallis. Show solutions.

Reference no: EM13921132

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