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4 points Save Answer Calvert has a target capital structure of 80% of common stock, 10% percent of preferred stock and 10% debt. The common
4 points Save Answer Calvert has a target capital structure of 80% of common stock, 10% percent of preferred stock and 10% debt. The common stock had a beta of 0.95 and recently paid a dividend of 2.50$. Debt includes 5.5% percent coupons with 25 years' maturity with a quoted price of 107% of par. The 3.5 percent preferred stock with the par value of 100$ currently trades for 68$. The risk free rate of return in the market is 2.8 percent, the risk premium is 6% and the tax rate is 25%. Compute Calvert's Weighted Average Cost of Capital (WACC) (4 points) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). R
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