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Calculate WACC (Weighted Average Cost of Capital) Finance Book value Debt maturity 17 years, 9.75%, market price $1,025 per bond, book value $10 million Equity
Calculate WACC (Weighted Average Cost of Capital) Finance
Book value
Debt maturity 17 years, 9.75%, market price $1,025 per bond, book value $10 million
Equity par value $1, book value $5 million, market price $12
Tax rate is 35%, expected equity rate of return = 16%
Please show work.
Also please detail how you calculate the bond.
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