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Given the following information for United Technologies Mega Corporation: Common stock: 1 million shares outstanding, $45 per share, $10 par value, beta - 1.2 Bonds:

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Given the following information for United Technologies Mega Corporation: Common stock: 1 million shares outstanding, $45 per share, $10 par value, beta - 1.2 Bonds: 10,000 bonds outstanding, $1,000 face value ach, 6% annual coupon, 15 years to maturity, market price = $1,101.23 per bond Market risk premium = 8.6%, risk-free rate=4.5%, marginal tax rate = 34% Calculate the following (rounded to 4 decimal places): a. Capital structure weights at market value; b. Cost of equity; c. Pre-tax and after-tax cost of debt; d. Weighted average cost of debt

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