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hello can someone please help me with this business finance question thank you You are given the following information for Magrath Power Co. Assume the
hello can someone please help me with this business finance question thank you
You are given the following information for Magrath Power Co. Assume the company's tax rate is 35%. Debt: 10,0006.4% coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 108% of par; the bonds make semiannual payments. Common stock. 495,000 shares outstanding, selling for $63 per share; the 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. What is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) WACC %Step by Step Solution
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