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Estimate your firm's Weighted Average Cost of Capital. Assume that the current risk-free rate of interest is 3.8%, the market risk premium is 5.5%, and

image text in transcribed Estimate your firm's Weighted Average Cost of Capital. Assume that the current risk-free rate of interest is 3.8%, the market risk premium is 5.5%, and the corporate tax rate is 21%. Debt: - Total book value: $13 million - Total market value: $18 million - Coupon rate: 4% - Yield to Maturity: 4\% > Common Stock: - Total book value: $10 million - Total market value: $19 million - Beta =0.9 > Preferred Stock: - Total book value: $4 million - Total market value: $6.6 million - Price per share: $20 - Dividend per share: $1 What is your firm's Weighted Average Cost of Capital (input as a raw number rounded to the 4 decimal places, i.e. if your answer is 7.1356%, input 7.1356 )

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