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Given the following information, compute the Weighted Average Cost of Capital (WACC) for internally generated funds: Preferred Shares Common Equity Debt # of Shares/Bonds Issued
Given the following information, compute the Weighted Average Cost of Capital (WACC) for internally generated funds: Preferred Shares Common Equity Debt # of Shares/Bonds Issued 16,500 116,000 2,000 FMV for One Share/Bond 69.00 $ 22.00 910.00 Add'l Info Corporate Tax Rate Dividend, Preferred $ Dividend. Commons Price, Preferred $ Price. Commons Corporate Growth Rate Bond Yield (Mkt Rate) Flotation Costs, Preferred Flotation Costs, Common $ Flotation Costs, Debt 34% 5.80 1.50 (Next Dividend Payment) 69.00 22.00 4% 8% 4% 2.04 / Share 4% Question 3 (4 marks) Given the information from Question 2, compute the weighted Average Cost of Capital (WACC) for externally generated funds
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