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10/12/20 10/12/40 $50,000,000 6.0% 100 2 20 97.5 Debt Settlement date Maturity date Bonds outstanding ($) Annual coupon rate Face value (%) Coupons per year

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10/12/20 10/12/40 $50,000,000 6.0% 100 2 20 97.5 Debt Settlement date Maturity date Bonds outstanding ($) Annual coupon rate Face value (%) Coupons per year Years to maturity Bond Price (% Face Value) Common stock Shares outstanding Beta Share price ($) Preferred stock Shares outstanding Dividend Share price ($) Market Market risk premium Risk-free rate Tax rate 650,000 1.35 $54 1,000,000 $2.50 $26.00 9.0% 2.0% 21.0% Calculation & Output Question 3 Market value of debt Market value of equity Market value of preferred Market value of firm Market value capital structure Weight of Debt Weight of Common Stock Weight of Preferred Stock

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