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Given the following information about your firm's capital structure, calculate your firm's WACC (assume the corporate tax rate is 35%). Debt Number of bonds outstanding

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Given the following information about your firm's capital structure, calculate your firm's WACC (assume the corporate tax rate is 35%). Debt Number of bonds outstanding = 8,000 o price per bond = $1,165 o par value per bond - $1,000 o coupon rate -6% (paid annually) o Years to maturity = 10 Common Stock Number of shares outstanding - 1,000,000 o Price per share - $25 Book value per share = $15 O Beta-1.4 O Risk free rate - 4.5% o Market risk premium = 5% a. 7.95% b.9.45% C. 8.88% d. 8.30% e. 9.08%

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