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A firm has 20,000 shares of common stock outstanding with a book value of $20 per share and a market value of $35. The firm
A firm has 20,000 shares of common stock outstanding with a book value of $20 per share and a market value of $35. The firm also has a $500,000 face value bond issue outstanding that is selling at 80% of par. The cost of equity is 18% and the cost of debt is 3%. Calculate the firm s WACC. (The answer should be rounded to four decimal places.)
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