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Adams Inc has a capital structure that consists of 70% common stock and 30% long-term debt. In order to calculate Adam's WACC, an analyst has

Adams Inc has a capital structure that consists of 70% common stock and 30% long-term debt. In order to calculate Adam's WACC, an analyst has accumulated the following information:

  • The company currently has 13-year, 8% annual coupon bonds that have a face value of $1,000 and sell for $1,075.
  • The risk-free rate is 5.25%.
  • The market risk premium is 4%.
  • The beta on Clark's common stock is 1.1.
  • The company's tax rate is 38%.

Question: What is the "pre-tax cost of debt", the "after-tax cost of debt", "cost of equity" and "WACC", respectively

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Adams Inc has a capital structure that consists of 70% common stock and 30% long-term debt. In order to calculate Adam's WACC, an analyst has accumulated the following information: - The company currently has 13 -year, 8% annual coupon bonds that have a face value of $1.000 and sell for $1,075. - The risk-free rate is 5.25%. - The market risk premium is 4%. - The beta on Clark's common stock is 1.1. - The company's tax rate is 38%. Question: What is the "pre-tax cost of debt", the "after-tax cost of debt", "cost of equity" and "WACC", respectively 7.10%,4.40%,9.65%,808% 7.32K.4.54%,10.658.82% 7.39%,4.58%,10.90%,9.00% 7.104,4.54,10.65%.900%

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