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Please show all calculations with formulas ABC Inc.'s capital structure is 40% debt, 30% preferred, and 30% common equity, and its tax rate is 35%.
Please show all calculations with formulas
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 non- callable bond several years ago that now has 15 years to maturity with 8% annual coupon, paid semiannually, at a price of $1,055, and a par value of $1,000. (b) ABC sold a perpetpal preferred stock for $95.50 per share, with a $7.50 annual dividend and a flotation cost of 3.00% of the price. (c) ABC also has beta =1.2, risk free rate of return f , =6.00% market risk premium RPM=7.00%; The question is: What is the company's WACCStep by Step Solution
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