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Bacchus Enterprises has $102M in preferred stock, $85M in book value of common stock, and $120M in debt selling at 96.7%. The common stock has
Bacchus Enterprises has $102M in preferred stock, $85M in book value of common stock, and $120M in debt selling at 96.7%. The common stock has a market to book ratio of 1.75, a yield to maturity on its debt of 5.4%, and a return on its preferred stock of 9.45%. The company is sitting in the 18% tax bracket, has a beta of 1.25 on its common stock, the market return is 15% and the risk free rate is 3.24%. What is the WACC?
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