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What is weighted average cost of capital for a company

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Reference no: EM132873506

Assume a company has the following information: 

Current dividend - $2.00

Current yield to maturity - 20%

Current share price - $90

Expected growth rate of 16% per year

Market value of debt - $300 million

Market capitalization - $700 million

Tax rate - 25%

Question 1: What is their weighted average cost of capital?

Reference no: EM132873506

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