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Only solution for part A, no need for BCD please Question # 14 [15 marks] The following information relates to the Jupiter Mining Corporation Ltd.

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Only solution for part A, no need for BCD please

Question # 14 [15 marks] The following information relates to the Jupiter Mining Corporation Ltd. Jupiter has 100,000 bonds outstanding with a face value of $100 each, which have 5 years to maturity and which pay an-annual 6% coupon. The yield on the bonds is 7% p.a. Jupiter's corporate tax rate is 30%. Jupiter has 5 million preference shares on issue, which are currently trading for $2.75 each, giving a total market value of $13.75 million. They pay an annual dividend of 25 cents. 4 Jupiter has 7 million ordinary shares on issue, which are currently trading for $6.00 each, giving a total market value of $42 million. These shares are expected to pay an annual dividend of $0.75 next year, and this dividend is expected to grow at a constant rate of 2% in perpetuity. a. What is the market value of Jupiter's bonds? [4 marks) b. What is Jupiter's cost of preference shares? [3 marks c. What is Jupiter's cost of ordinary shares? [3 marks] d. What is Jupiter's WACC

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