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Please explain answes in detail and do not use excel! FIN201 - CORPORATE FINANCE GROUP ASSIGNMENT #5 FOR SESSION 8 - RISK, COST OF CAPITAL
Please explain answes in detail and do not use excel!
FIN201 - CORPORATE FINANCE GROUP ASSIGNMENT \#5 FOR SESSION 8 - RISK, COST OF CAPITAL AND VALUATION JISOO CORP has the following information: a. Debt 30,000 bonds (face value =$1,000 ) with a coupon rate of 6% and 25 years to maturity. The market price of the bonds is $110 each. The bonds make annual payments. b. Common stock 400,000 shares of common stocks. The market price of the common stock is $79 /stock. In addition, the stock's beta is 1.2 . c. Preferred stock 250,000 shares of preferred stocks with the dividend of $4/ year and the current price of $75. The yield of government bond is 3% and the market risk premium is 7.5%. Moreover, the tax rate is 21% for JISOO CORP. Calculate the WACC for the companyStep by Step Solution
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