The financial analyst at Roberts' Caf wants to compute the company's weighted average cost of...
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Accounting
The financial analyst at Roberts' Caf wants to compute the company's weighted average cost of capital (WACC). The following table summarizes the available information:
Before-tax cost of new debt8%
Tax rate40%
Target debt-to-equity ratio0.8033
Stock Price$30
Next year's dividends$1.50
Estimated growth rate7%
Roberts' WACC is closest to:
Group of answer choices
10%
9%
7%
12%
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