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2. B Company has 10 million 25 cents ordinary shares in issue with a current price on cents cum dividend. An annual dividend of 9

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2. B Company has 10 million 25 cents ordinary shares in issue with a current price on cents cum dividend. An annual dividend of 9 cents has just been proposed. The carns an accounting rate of return to equity (ROE) of 10% and pays out 40% the return as dividends. The company also has 13% redeemable loan notes with a no value of $7 million, trading at $105. They are due to be redeemed at par in 5 years' If the rate of corporation tax is 33%, what is the company's WACC? 2. B Company has 10 million 25 cents ordinary shares in issue with a current price on cents cum dividend. An annual dividend of 9 cents has just been proposed. The carns an accounting rate of return to equity (ROE) of 10% and pays out 40% the return as dividends. The company also has 13% redeemable loan notes with a no value of $7 million, trading at $105. They are due to be redeemed at par in 5 years' If the rate of corporation tax is 33%, what is the company's WACC

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