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PLEASE SOLVE IN EXCEL AND SHOW HOW The Saunders Investment Bank has the following financing outstanding. Debt: 49,000 bonds with a coupon rate of 5.4
PLEASE SOLVE IN EXCEL AND SHOW HOW
The Saunders Investment Bank has the following financing outstanding. Debt: 49,000 bonds with a coupon rate of 5.4 percent and a current price quote of 105.9; the bonds have 11 years to maturity and a par value of $1,000. 16,700 zero coupon bonds with a price quote of 24.3, 27 years until maturity, and a par value of $10,000. Both bonds have semiannual compounding. Preferred 144,000 shares of 3.9 percent preferred stock with a current price of stock: $91 and a par value of $100. Common 2,080,000 shares of common stock; the current price is $81 and the beta stock: of the stock is 1.05. Market: The corporate tax rate is 24 percent, the market risk premium is 74 percent, and the risk-free rate is 3.4 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.) WACC %Step by Step Solution
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