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1)Compute WACC, given the following: $128MM in debt with interest payments of 7.11% but the ability to borrow at 6.83%, $38MM in preferred equity priced

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1)Compute WACC, given the following: $128MM in debt with interest payments of 7.11% but the ability to borrow at 6.83%, $38MM in preferred equity priced at $19.90 per share with an annual dividend of $1.85 and $295MM in common equity on which investors demand 16.52% return. The company faces a 33% tax rate. 2)Predict the cash flow for year 9 based on the growth of the following annual cash flows: Year 1: 11,000 Year 2: 11,578 Year 3: 12,185 Year 4: 12,825 Year 5: 13,498

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