The Salisbury Stake Company wants to buy a new robotic wood lathe. They have a...
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Accounting
- The Salisbury Stake Company wants to buy a new robotic wood lathe. They have a target debt/equity ratio of 4. Their equity has a dividend yield of 2%, and a growth rate for dividends of 5%. They were able to issue new debt for their project with a 6% coupon rate, which sold at par upon issuance. If their tax rate is 20%, then their WACC is:
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