What is the companys weighted average cost of capital

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SolarTech Inc. is expected to pay a $2.50 dividend at year end, the dividend grows at a constant rate of 5.50% a year, and the common stock currently sells for $67.50 a share. The before-tax cost of debt is 7.50%, and the tax rate is 40%. The company's capital structure consists of 45% debt and 55% common equity. What is the company’s weighted average cost of capital (WACC)?

Reference no: EM13919377

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