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Given the following information for UCW MBA Inc., find the WACC. Assume the company's tax rate is 35%. Debt: 10,000 Coupon 6.4% bonds outstanding, $1,000
Given the following information for UCW MBA Inc., find the WACC.
Assume the company's tax rate is 35%.
Debt: 10,000 Coupon 6.4% bonds outstanding, $1,000 par value, 25 years to maturity, selling for 108% of par; the bonds make semi-annual payments.
Common stock: 495,000 shares outstanding, selling for $63 per share, beta is 1.15.
Preferred stock: 35,000 shares of 3.5% preferred stock outstanding, currently selling for $72 per share.
Market: 7% market risk premium and 3.2% risk-free rate.
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Given the following information for UCW MBA Inc., find the WACC.
Assume the company's tax rate is 35%.
Debt: 10,000 Coupon 6.4% bonds outstanding, $1,000 par value, 25 years to maturity, selling for 108% of par; the bonds make semi-annual payments.
Common stock: 495,000 shares outstanding, selling for $63 per share, beta is 1.15.
Preferred stock: 35,000 shares of 3.5% preferred stock outstanding, currently selling for $72 per share.
Market: 7% market risk premium and 3.2% risk-free rate.
Show your steps.
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