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Divided Furniture Inc. has 1 1 , 0 0 0 bonds outstanding with a market price of $ 1 0 4 per bond. The firm
Divided Furniture Inc. has bonds outstanding with a market price of $ per bond. The firm also has preferred shares outstanding and common shares outstanding. Preferred stock and common stock are both expected to pay a yearend dividend of $ per share. The current price per share of common stock is $ per share. Preferred stock is priced at $ per share. Preferred dividends do not grow and common stock dividends are expected to grow at a rate of percent. The firm's tax rate is percent. If the yield on the firm's bonds is what is the firm's weighted average cost of capital?
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