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company has 2 million shares outstanding that are currently priced at $4 each and have a beta of 1.3. Five years ago the company issued

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company has 2 million shares outstanding that are currently priced at $4 each and have a beta of 1.3. Five years ago the company issued bonds with a total face value of 33 million bond has a face value of $250,000. The bonds have a coupon rate of 3% pa. and coupons are paid every six months. The bonds mature in fifteen years from today. The bonds currene yield 4% pa, the market return is 7% p.a., the risk-free return is 2% p.a., and the company tax rate is 30% What proportion of the firm's capital structure is equity? TTT Arial 3 (12pt) # TE Pathep Words: 0 Moving to another question will save this response. Question 6 of 26

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