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1. Suppose a firm has 42.90 million shares of common stock outstanding at a price of $23.76 per share. The firm also has 419000.00 bonds

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1. Suppose a firm has 42.90 million shares of common stock outstanding at a price of $23.76 per share. The firm also has 419000.00 bonds outstanding with a current price of $1,186.00. The outstanding bonds have yield to maturity 8.78%. The firm's common stock beta is 1.382 and the corporate tax rate is 39.00% The expected market return is 12.85% and the T-bill rate is 4.34%. Compute the following. a) Weight of Equity of the firm: b) Weight of Debt of the firm: c) Cost of Equity of the firm: d) After Tax Cost of Debt of the firm: e) WACC for the Firm

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