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12. Chuckney Industries has a target capital structure of 60% debt and 40% common equity. Their cost of equity is 12% and the vield to

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12. Chuckney Industries has a target capital structure of 60% debt and 40% common equity. Their cost of equity is 12% and the vield to maturity on the company's bonds is 9%. If the current corporate tax rate is 40%, what is their weighted average cost of capital? a. 8.04% b. 10.5% c. 10.8% d. 11.5% e. none of the above 13. Suppose we have a bond issue currently outstanding that has 25 years left to maturity. The coupon rate is 9% and coupons are paid semiannually. The bond is currently selling for $795.89 per $1,000 bond. What is the yield to maturity? a. 5.0% b. 9.0% c. 10.0% d. 11.5% e. none of the above 3 76 ) View

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