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Commander Adam, from the Battlestar Galactica, would like for you to figure out the cost of debt they have incurred after fighting the Cylons. Given
Commander Adam, from the Battlestar Galactica, would like for you to figure out the cost of debt they have incurred after fighting the Cylons. Given the following information, figure out the cost of debt so that they can calculate their WACC. Galactica sold a $1,000 par value, noncallable bond that now has 15 years to maturity and an 8.00% annual coupon that is paid semiannually. Their current bond sells for $925 and their tax rate is 35%. Group of answer choices 6.70% 5.80% 5.75% 4.61% 5.41% Donald Duck would like for you to figure out the WACC for his company. Donald Duck's current target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of retained earnings is 12.00%. So what would Donald Duck's WACC going to be at? Group of answer choices 6.96% 7.59% 6.69% 8.93% 7.68%
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