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A corporation has 10,000 bonds outstanding with a 10% coupon rate and semiannual coupons, has a face value of $1,000, 20 years to maturity and

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A corporation has 10,000 bonds outstanding with a 10% coupon rate and semiannual coupons, has a face value of $1,000, 20 years to maturity and is selling for $1,197.93. The company's 150,000 shares of preferred stock pays a $2.50 annual dividend, and sell for $36 per share. The company's has 1,000,000 shares of common stock. The next dividend payment by will be $2.45 per share. The dividends are anticipated to maintain a 5.5 percent growth rate, forever. The stock currently sells for $49.50 per share, Assuming a 40% tax rate, what is the company's WACC? c. What is the market value of the bonds? (b) What is the return required by bond holders? (c) What is the market value of the preference shares? (2) What is the return required by preferred shareholders? co) What is the market value of the common stock? 1. What is the return required by common stock holders? ( What is the WACC

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