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PLEASE SHOW STEP BY STEP SOLUTION! IM A NOVICE AT THIS! DO NOT SKIP ANY STEPS Given the following information for Groto Corp. find the

PLEASE SHOW STEP BY STEP SOLUTION! IM A NOVICE AT THIS! DO NOT SKIP ANY STEPS

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Given the following information for Groto Corp. find the WACC. Assume the company's tax rate is 30%. Bonds: 10,000 9% coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 98% of par; the bonds make semi-annual payments. Common shares: 300,000 shares outstanding, selling for $40 per share: the beta is 0.95. Preferred shares: 55,000 shares of 6% preferred stock outstanding, currently selling for $100 per share. 10% market risk premium and 3% risk-free rate. 13.32% 12.32% 11.22% 9.02% Jabila Corporation is an all equity company with common and preferred shares. There are 600,000 common shares outstanding. Currently the common shares have a price of $15 per share and have consistently provided a $3 per share dividend. There are 75,000 8% preferred shares outstanding, with a stock price of $100 per share. Given this information, calculated the company's WACC. 12.35% 13.45% 14.55% 15.65%

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