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Min Max Corp has the following capital structure: 55% equity (giving a return of 9%), 10% preferred shares (with a yield of 6%), and 35%
Min Max Corp has the following capital structure: 55% equity (giving a return of 9%), 10% preferred shares (with a yield of 6%), and 35% debt (with a coupon rate of 10% and yield to maturity of 6.5%). If there are no taxes, what is the firm's WACC? O 10.333% O 9.050% O 7.825% O 6.915% Sunland Power and Telecommunications Corporation has three divisions. The names of these divisions, along with the after-tax cost of capital for each division and the market value of the assets in each division, are as follows: Division Name Infrastructure development Power Telecommunications Cost of Capital 8.55 7.50 8.10 MV of Assets $245,000,000 $319,000,000 $662,000,000 What is the overall after-tax cost of capital for Sunland Power and Telecommunications? (Round answer to 2 decimal places, e.g. 52.75%.) After-tax cost of capital Residual owners are: O bond holders equity holders O equity and preferred shareholders all of the above Which of the following is not an input in the calculation of WACC? O Market values of equity and debt O Corporate tax rate O Book values of equity and debt O Cost of equity
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