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Company Z has 50,000 shares of common stock outstanding that sells for $10 per share, and its cost of common equity is 12%. The company
Company Z has 50,000 shares of common stock outstanding that sells for $10 per share, and its cost of common equity is 12%. The company also has 400 bonds outstanding that sell at par ($1000) and make semi-annual coupon payments of $30. Preferred stock outstanding for the company sells at $25 per share, there are 4000 shares outstanding, and the cost of the preferreds is 10%. Ignoring taxes, what is the companys WACC?
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