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please show work. will thumbs up. The Saunders Investment Bank has the following financing outstanding Debt 50,000 bonds with a coupon rate of 8 percent
please show work. will thumbs up.
The Saunders Investment Bank has the following financing outstanding Debt 50,000 bonds with a coupon rate of 8 percent and a current price quote of 108.0; the bonds have 20 years to maturity. 220,000 zero coupon bonds with a price quote of 21.0 and 30 years until maturity. 140,000 shares of 6 percent preferred stock with a current price of $77, and a par value of $100 Preferred stock: 2,500,000 shares of common stock; the current price is $63, and the beta of the stock is 1.40 Common stock: Market: The corporate tax rate is 35 percent, the market risk premium is 6 percent, and the risk- free rate is 3 percent. What is the WACC for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)Step by Step Solution
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