What is the weighted average cost of capital

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Gizmo Inc has outstanding 10-year bonds with a 13% coupon rate, annual payments selling for $1,056.50. stock selling for $125 and pays a fixed dividend of $20. Gizmo common stock is selling for $100 and has a beta of The last dividend paid was $10 and dividends are expected to grow at 9.09% a year. The current capital structure based on market values is 20% debt, 10% Preferred Stock, and 70% Common Equity. The target capital structure is 50% debt and 50% common equity. What is the weighted average cost of capital for the project?

Reference no: EM131318187

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