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a. Curenly bonds with a simlar oredit rating and maturity as the firm's cutstanding dett are selling to yeld 7.57 percent while the borrowing firm's

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a. Curenly bonds with a simlar oredit rating and maturity as the firm's cutstanding dett are selling to yeld 7.57 percent while the borrowing firm's corporate tax rate is 34 percent. b. Common stock for a firm that poid a $1.07 dividend last year. The dividends are expected to grow at a rate of 5.4 percent per year into the foreseeatie future. The price of this stock is now $24.54. c. A bond that has a $1,000 par value and a coupon interest rate of 129 percent with interest paid semiannually. A new issue would sell for $1,153 per bond and mature in 20 years. The firm's tax rate is 34 percent. d. A preferted stock paying a dividend of 7.4 percont on a $102 par value. If a new issue is oflered, the shaves would soll for $84.46 par shafo. a. The affertax cost of debt debt for the firm is N. (Round to two decimal places.) b. The cost of common equity for the firm is 4. (Round to two decmal places) c. The aftentax cost of debt for the firm is *. (Round to two decimal places.) d. The cost of preferred stock for the fim in S. (Round to two decimat places) (Reiated to Checkpoint 14.1) (Weighted average cost of capital) The target capital structure for OM industries is 41 percent common stock, 15 percont pieferred stock, and 44 percent deot. If the cost of common equily for the firm is 18.8 percent, the cost of prefered stock is 9.7 percent, the before-tax cost of debt is 8.1 percent, and the firm's tax rate is 35 percent, what is OM.'s weighted average cost of capital? OMs weighted average cost of copital is K. (Round to three decimal places)

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