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Canvas D Question 18 7 pts You have been assigned to calculate the Weighted-Average-Cost-of-Capital (WACC) for your small firm. The company has three sources
Canvas D Question 18 7 pts You have been assigned to calculate the Weighted-Average-Cost-of-Capital (WACC) for your small firm. The company has three sources of long-term capital. Its marginal tax rate is 21%. First, there are 2,354,000 shares of common stock outstanding, which are currently trading at $37.51 per share. Recently, your firm announced Earnings per Share (EPS) of $3.32. You expect eamings to grow at 2.55% per year indefinitely. Second, the firm has 240.00 shraes of prefered stock outstanding. These shares pay annual (perpetuall dividends of $7.50 and are currently selling for $101.74. Third, there is an issue of 62.500 coupon bonds outstanding. These bonds have a face value of $1.000, mature in seventeen years, and pay 5.74% annual coupons. These instruments are currently trading for $947.51. Based on the data, what portion of the market value of the firm's assets are financed with debt? 65.56% 51.36% 34.44% O 14.20% 30.76% esc Question 19 * 80 80 13 #c 000 000 14 4A $ 4 F5 45 % > 6 4 pts & 87 " 8 *
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