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For Bonds Years until maturity 25 Coupon rate (assume annual coupon payments) 8.40% Face 1,000 Current Price 880 Number of bonds outstanding 18,000 For Preferred
| For Bonds | ||||
| Years until maturity | 25 | |||
| Coupon rate (assume annual coupon payments) | 8.40% | |||
| Face | 1,000 | |||
| Current Price | 880 | |||
| Number of bonds outstanding | 18,000 | |||
| For Preferred Stock | ||||
| Price of Preferred Stock | 34.85 | |||
| Dividend on Preferred | 4.18 | |||
| Number or preferred shares outstanding | 25,600 | |||
| For Common Stock | ||||
| Common price | 26.34 | |||
| Estimated growth rate in dividends | 3.00% | |||
| Estimated dividend in one year | 3.00 | |||
| (Assume annual dividends) | ||||
| Number of common shares outstanding | 729,000 | |||
| Tax rate | 35.40% | |||
| What is WACC? | ||||
| A Between 0.0% and 8.0% | ||||
| B Between 8.0% and 10.0% | ||||
| C Between 10.0% and 12.0% | ||||
| D Between 12.0% and 16.0% | ||||
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Advanced Accounting
Authors: Gail Fayerman
1st Canadian Edition
9781118774113, 1118774116, 111803791X, 978-1118037911
