What is the marginal tax rate in given case

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Question: A common stock priced at $78.56 pays an annual dividend of $2.50 which is expected to growth indefinitely at 5% annually. What is its component cost of capital if it faces a 2% flotation cost? Mouton Limited, Inc faced an after-tax cost of debt of 3.4% and a yield to maturity of 5%. What is its marginal tax rate? Mouton Limited, Inc faced an after-tax cost of debt of 8.4% and a yield to maturity of 10.0%. What is its marginal tax rate?

Reference no: EM131956738

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