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How to do this question? Company B has the following long-term funding: - 1,000,000 shares of common stock, issued at $10 per share. The shares
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Company B has the following long-term funding: - 1,000,000 shares of common stock, issued at $10 per share. The shares are traded now in share market at $12.50 per share, have a beta of 1.5, the risk-free rate is 2%, and the market return is 10%. - 100,000 shares of preferred stock pay a $2 annual dividend, and sell for $20 per share. - 10,000 bonds outstanding with a 6% annual coupon rate, interest is paid semi-annually, 8 years to maturity, a $1,000 face value, and a $995 market price. Assuming a 25% tax rate, what is the company's WACCStep by Step Solution
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