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IVIC VU. U JJSLeLearl Has... JJ's Ice Cream has 1.800 bonds outstanding that are selling for $1,015 each, mature in 11 years, and have an
IVIC VU. U JJSLeLearl Has... JJ's Ice Cream has 1.800 bonds outstanding that are selling for $1,015 each, mature in 11 years, and have an aftertax rate of return of 6.2 percent. There are 45,000 shares of common stock outstanding with a market price of $50 a share. The next annual dividend will be $2.40 per share with annual increases thereafter of 25 percent. The risk-free rate is 4 percent, the market risk premium is 7 percent, and the tax rate is 35 percent. What is the company's WACC? Saved 26 Multiple Choice 6.59% 7038 703% 539% 725% 6.81% 68%, PreVo 50
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