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1 . Assume you are to receive a 2 5 - year annuity with annual payments of $ 1 , 5 0 0 . The

1. Assume you are to receive a 25-year annuity with annual payments of $1,500. The first payment will be received at the end of Year 1, and the last payment will be received at the end of Year 25. You will invest each payment in an account that pays 6.5 percent annually in compound interest. What will be the value of your account 50 years from today?
2. A company has a capital structure that consists of $10million of debt, $5 million of preferred stock, and $25 million of common stock, based upon current market values.The yield to maturity on its bonds is 8.25%, and investors require a 10.50% return on the company's preferred stocks and a 19.50% return on the common stocks. If the tax rate is 21%, what is the
current WACC of this company?
PLEASE SHOW THE WORK NO EXCEL

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