XYZ Corporation is using $53 million in Retained Earnings to fund a new project. Given...
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XYZ Corporation is using $53 million in Retained Earnings to fund a new project. Given that its Common Stock is currently selling at $231 per share, paying dividends of $13 per year, while the company is growing at 7% per year and its aggregate corporate tax rate for this company is 36%, compute the after tax cost of capital for this corporation's usage of Retained Earnings. Write your answer as percentage (e.g. if your answer is 5%, write 5 not 0.05). Note: round your answer to two decimal places, and do not include spaces, percentage signs, plus or minus signs, nor commas. You Answered 6.05 Correct Answer 12.63 margin of error +/- 0.2
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