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Consider the following information for Evenflow Power Co., Assume the company's tax rate is 34 percent. Note: Face value is sometimes used interchangeably with par
Consider the following information for Evenflow Power Co., Assume the company's tax rate is 34 percent. Note: Face value is sometimes used interchangeably with par value. Preferred shares almost always pay a constant dividend, but the dividend is usually quoted as a percent of par value (just like coupons and bonds). So as an example, a 7% preferred dividend on a $100 par value means the annual dividend payment is $7. Required: Find the WACC. (Do not round your intermediate calculations.)
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