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Compute the WACC for a company in the 30% tax bracket if it has a $10 million bond issue with 15 years to maturity a
Compute the WACC for a company in the 30% tax bracket if it has a $10 million bond issue with 15 years to maturity a 5% annual coupon (but, paying semiannually) and a market price of $925; $2 million of $50 par value preferred stock with a price of 85% and an annual dividend of $3.00; and 5 million shares of common stock at a current price of $15 and a beta of 1.3 when the risk free rate of return is 3% and the market rate of return is 10%.
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