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Click to see additional instructions You are evaluating Company B and know the following: o = .0576, 08. = .0432, v = .125, PR =

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Click to see additional instructions You are evaluating Company B and know the following: o = .0576, 08. = .0432, "v = .125, PR = .055 The marginal corporate tax rate is 21%. The YTM (yield to maturity) on the debt of Company B (incorporating floatation costs) is 7.1%. Company B issued preferred stock for $600.00 per share net of flotation costs. The preferred pays an annual dividend of $54.00 per share. The book value of the debt is $171,600,000 and you decide that this is close to the market value of the debt. The market value of all the preferred shares is $93,600,000 and the market value of the common stock is $124,800,000. The Beta for Company B's common stock, carried out two places is The expected return for Company Bis common stock, (written as a decimal and carried out four places) is Click to see additional instructions The expected return for Company B's preferred stock (the cost of preferred including floatation costs) expressed as a decimal is The weight of the debt (expressed as a decimal and carried out 2 places) is The weight of the preferred (expressed as a decimal and carried out 2 places) is The weight of the common stock (expressed as a decimal and carried out 2 places) is The weight of the debt (expressed as a decimal and carried out 2 places) is The weight of the preferred (expressed as a decimal and carried out 2 places) is The weight of the common stock (expressed as a decimal and carried out 2 places) is The WACC (weighted average cost of capital) for Company B (expressed as a decimal and carried out five places) is Be sure to carry out 5 places in your calculations

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