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14.(15 points) A corporation has 10.000 bonds outstanding with a 7% annual coupon rate. 10 years to maturity, a $1.000 face value, and a $950

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14.(15 points) A corporation has 10.000 bonds outstanding with a 7% annual coupon rate. 10 years to maturity, a $1.000 face value, and a $950 market price. The company's 400,000 shares of common stock sell for $85 per share, have a beta of 1.2. the risk-free rate is 2%, and the expected market return is 18%. Assuming a tax rate of 35%, what is this corporation's weighted average cost of capital? Please show work for partial credit

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