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A company with return on equity of 16.0% and plowback ratio of 60% would expect constant-growth rate of:

a. 22.92% b. 3.75% c. 9.60% d. 26.67%

With a tax rate of 30%, calculate the WACC fora firm that pays 9.00% on its debt, requires a 17% rate of return on its equity, and finances 35% of assets with debt.

a. 13.00% b. 13.26% c. 17.20% d. 13.40%