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2USdOigd! Use the following data to answer Question 16. Luna Fifield, CFA, is reviewing MBC Company's financial statements. MBC's long-term debt total $35 million, while
2USdOigd! Use the following data to answer Question 16. Luna Fifield, CFA, is reviewing MBC Company's financial statements. MBC's long-term debt total $35 million, while total shareholder equity equals $140 million MBC's long-term debt consisting of 15-yean bonds making semiannual coupon payments of $60 with a par value of $1000 Each bond was sold for $1244.33 MBC's tax rate is 40% and its beta is 0.9. Luna gathers the following additional facts Treasury bills earn 4.0% The risk premium of the stock is 4.05% 16. Based on the information provided, MBC's weighted average cost of to poin capital is closest to: O A. 6.17% O B.4.31% O C.3.80% O 0.72 O E None of the above Page
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