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equity, and it does not exp intermediate calculations. a . 1 1 . 0 3 % b . 8 . 9 0 % C .

equity, and it does not exp intermediate calculations.
a.11.03%
b.8.90%
C.9.32%
d.6.76%
e.10.32%
Sapp Trucking's balance sheet shows a total of noncallable $45 million long-term debt with a coupon nute of 7.00% and a yield to maturity of 6.00%. This debt currently has a market value of $50 million. The balinge sheet also shows that the company has 10 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $65 million. The current stock price is $24.50 per shere. stockholders' required return, rS, is 14.00%; and the firm's tax rate is 25%. The CFO winks the wacc br-4 be based on market value weights, but the president thinks book weights are more appropiate What st the difference between these two WACCs?
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