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Calculate WACC (Please show work) $30,000,000 par value of 20-year bonds issued in 2007 (today is 2010) paying 8% in interest *Market rate for similar
Calculate WACC (Please show work)
$30,000,000 par value of 20-year bonds issued in 2007 (today is 2010) paying 8% in interest
*Market rate for similar bonds is 6%
*750,000 shares of preferred stock, market price = $30, dividend = $2.50
*1,500,000 shares of common stock, market price = $20, dividend next period = $.75, expected growth rate = 10%, risk free rate = 4%, market premium = 12%, Beta = 1.21
*Companys tax rate = 40%
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