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Business, 08.12.2020 14:00 alannaamarriee

Your firm shows the below bata: Debt

Outstanding debt $500M face value

Current quote 110

Coupon Rate 7.5%

Annual Coupons

TTM 20 years

Tax rate 36%

Common Stocks

Outstanding shares 20M

Price per share $25

Beta 1.15

Market risk premium 8%

Risk free rate 3%

Preferred Stocks

Price $25

Annual Dividend $2.5

What is the weighted average cost of capital? (show your work)

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Answers: 3

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Your firm shows the below bata: Debt

Outstanding debt $500M face value

Curr...
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