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Computing WACC Winter Sports Co. has 14 million shares of common stock outstanding. 900,000 shares of 6.6 percent preferred stock outstanding and 220,000 bonds outstanding.

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Computing WACC Winter Sports Co. has 14 million shares of common stock outstanding. 900,000 shares of 6.6 percent preferred stock outstanding and 220,000 bonds outstanding. The common stock currently sells for $42 per share and has a bete of 0.65, the preferred stock has a par value of $50 per share and is currently selling for $80 per share. The bonds have a coupon rate of 10%, 11 years to maturity and sell for 910 percent of par. The market risk premium is 11.5 percent, the risk-free rate of return is 4.1 percent, and the firm's tax rate is 32 percent What is the weight of debt that you should use in computing the firm's weighted average cost of capital (Click to select) What is the cost of equity (Re) for this firm? Click to select) What is the cost of preferred stock (Rp) for this firm? (Click to select) Vhat is the cost of debt (Rp) for this firm? hat is the firm's weighted average cost of capital (WACC)

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