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please answer ABC Inc.'s capital structure is 40 debt, 30% preferred, and 30 common equity, and its tax rate is 35%. For financing, (a) ABC
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ABC Inc.'s capital structure is 40 debt, 30% preferred, and 30 common equity, and its tax rate is 35\%. For financing, (a) ABC sold a noncallable bond several years ago that now has 15 years to maturity with 88 annual coupon, paid semiannually, at a price of $1,055, and a par value of $1,000. (b) ABC sold a perpetual preferred stock for $95.50 per share, with a $7.50 annual dividend and a flotation cost of 3.00 o of the price. (c) ABC also has beta =1.2, risk free rate of return 5 sie =6.008; market risk premium RPM=7.008; The question is: What is the company's WACC Step by Step Solution
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