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3) What is the capital structure of this company based on market values? . Bond issue #1, maturity 12 years, coupon rte 9%, current YTM

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3) What is the capital structure of this company based on market values? . Bond issue #1, maturity 12 years, coupon rte 9%, current YTM 9.75%, book value $10 million . Bond issue #2, maturity 16 years, coupon rate 9%, current YTM 7.75%, book value $15 million . Preferred stock, 500,000 shares, par $10 per share . Common stock, par $1 per share, book value $10 milliorn . Market price of preferred stock is $17.50, market price of common stock is $15 What is the WACC if: Tax rate 40% Preferred stock dividend = $1.50 per share Common stock dividend = $.375 per share . Beta is 1.15 RFR = 5.21% Expected return of the market: 14%

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