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D Use the following information to answer questions 20 through 25 Acme Services CFO is considering whether to take on a new project that has

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D Use the following information to answer questions 20 through 25 Acme Services CFO is considering whether to take on a new project that has average risk. She has collected the following information: The company has outstanding bonds that mature in 15 years. The bonds have a face value of $1,000, an annual coupon of 7.5% and sell in the market today for $1.150. There are 15,000 bonds outstanding The risk-free rate is 3% The market risk premium is 5% The stock's beta is 0.9 The company's tax rate is 35% The company has 100.000 shares of preferred stock with a par value of $100. These shares are currently trading at $73, and pay an annual dividend of $3.50. . The company also has 2.250,000 common shares trading at $15. These shares last paid an annual dividend of $0.33 Question 20 8 pts What is the cost of Acme's common shares? 7.50% 6,11% 5.49% O 7.01% O 5,83% Question 21 What is the value of Acme's preferred shares? O $5.9M O $7.3M A O $3.1M O $6.2M O $4.3M What is the cost of Acme's preferred shares? O 4.79% 05.15% O 4.01% O 3.29% O 6.94% What is the weight of Acme's debt? O 29.59% O 18.29% O 14.66% 0 23.59% 0 26.10% What is Acme's firm value? O $63.9M O $65.2M O $58.3M O $67.1M O $61.2M What is the value of Acme's debt? O $17.25M O $20.25M O $18.25M O $21.25M O $19.25M

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