What is the wacc of quinlan enterprises

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Reference no: EM131795125

Question: Quinlan Enterprises stock trades for $53.50 per share. It is expected to pay a $2.25 dividend at year end and the dividend is expected to grow at a constant rate of 5.00% a year. The before-tax cost of debt is 7.50%, and the tax rate is 40%. The target capital structure consists of 45% debt and 55% common equity. What is the company's WACC if all the equity used is from reinvested earnings?

Reference no: EM131795125

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