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Given the following information for ABC Ltd. Assume the effective tax rate=30% Debt : 2000 commercial bills, $5,000 face value, 90 days to maturity, a

Given the following information for ABC Ltd. Assume the effective tax rate=30%

Debt:

2000 commercial bills, $5,000 face value, 90 days to maturity, a current interest rate (yield), selling for $4,903.

4000 zero coupon bonds an YTM of 9.84%, $10,000 face value, 10 years to maturity

Common stock:

600,000 shares outstanding, selling for $55 per share; the beta is 1.05.

Market:

6% market risk premium and 4% risk-free rate.

You are required to compute the WACC

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