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A firm has 2 million shares outstanding, which are currently trading at $45 per share and have a dividend yield of 10 percent. The firm
A firm has 2 million shares outstanding, which are currently trading at $45 per share and have a dividend yield of 10 percent. The firm also has $40 million of 6 percent bonds outstanding that are currently trading at 110, with a yield to maturity of 3 percent. There are no preferred shares and no taxes. What is the WACC?
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