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A company has issued $ 1 0 0 M in bonds which are trading at a 3 % premium, and it has issued 6 0
A company has issued $M in bonds which are trading at a
premium, and it has issued M shares which are trading
at $ per share.
The bonds are yielding EAR.
The shares are paying dividends of $ per annum with a
payout ratio.
What is the firms weighted average cost of capital if the
corporate tax rate is
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