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Find WACC *Preferred Stock Not Given Last, you assume that LPX will raise all of the capital to finance this project using a blend of
Find WACC
*Preferred Stock Not Given
Last, you assume that LPX will raise all of the capital to finance this project using a blend of debt and equity, and intends to use a capital structure based on the following existing outstanding sources. As a result, you base your cost of capital assumptions on the following: The firm currently has 1,120,000 bonds outstanding with the following terms: - Remaining Maturity =15 years, Coupon Rate =5.40% (semiannual pay), Current Price =$990. The firm currently has 73,000,000 common shares outstanding with the following price and market terms: - Stock price =$54, Beta =1.15; Rf Rate =1%; ERm =8%Step by Step Solution
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