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Bargain Jargon, Inc., an advertising firm, has a capital structure that consists of 6 0 % common stock and 4 0 % long - term
Bargain Jargon, Inc., an advertising firm, has a capital structure that consists of common stock and longterm debt. In order
to calculate Beebop's weighted average cost of capital, an analyst has accumulated the following information:
The company currently has year bonds outstanding with annual coupon payments of The bonds sell for $
The riskfree rate is
The market risk premium is
The beta on Bargain's common stock is
The company's retained earnings are sufficient so that they do not have to issue any new common stock.
The company's tax rate is
Given this information, what is Bargain's WACC?
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