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10.54% 8.68% 8 pts Question 19 You have been assigned to calculate the weighted Average-Cost-of-Capital (WACC) for your small form. The company has sources of

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10.54% 8.68% 8 pts Question 19 You have been assigned to calculate the weighted Average-Cost-of-Capital (WACC) for your small form. The company has sources of long-term capital. Its marginal tax rate is 23% First, there are 2354,000 shares of common stock outstanding, which are currently trading at $37.51 per share. Recently, your form announced Earnings per Share (EPS) of $3.32. You expect earnings to grow at 1.55% per year indefinitely, Second, there is an issue of 42,500 coupon bonds outstanding. These bonds have a face value of $1,000, mature in seventeen years, and pay 5.74% annual coupons. These instruments are currently trading for $923.16. Based on the current price, estimate the yield-to-maturity on the firm's bonds. 5.OS 6.22% 0525 0650X 5.74%

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