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Assume the company s tax rate is 4 0 percent. Debt: 5 , 0 0 0 7 . 8 percent coupon bonds outstanding, $ 1

Assume the companys tax rate is 40 percent.
Debt: 5,0007.8 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 107 percent of par; the bonds make semiannual payments.
Common stock: 500,000 shares outstanding, selling for $68 per share; the beta is 1.11.
Market: 9 percent market risk premium and 5.8 percent risk-free rate.
What is the company's WACC?

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