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I would like some help please and show your work. I have been trying to figure this one out for the last hour. Charlotte's Crochet
I would like some help please and show your work. I have been trying to figure this one out for the last hour.
Charlotte's Crochet Shoppe has 11,600 shares of common stock outstanding at a price per share of $66 and a rate of return of 11.25 percent. The company also has 350 bonds outstanding, with a par value of $1,000 per bond. The pretax cost of debt is 5.95 percent and the bonds sell for 94.5 percent of par. What is the firm's WACC if the tax rate is 40 percent? Multiple Choice 10.0754 O 8.63% 8.93% 9.65% O O 8.46%Step by Step Solution
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