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Given that beta is 1.2, Rf=5%, the market risk premium = 7%, preferred stock has a value of $48 with a dividend of $6, the
Given that beta is 1.2, Rf=5%, the market risk premium = 7%, preferred stock has a value of $48 with a dividend of $6, the corporate tax rate is 20%, bonds are issued at par and the coupon is 11%, capital structure is 20% preferred, 35% debt and 45% common, what is WACC?
a. 12.4%
b. 11.61%
c. 9.1%
d. greater than 12.5%
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