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pls hurry thank youuu Jake's Sound Systems has 210,000 shares of common stock outstanding with a book value of $10 and currently selling for $30
pls hurry thank youuu
Jake's Sound Systems has 210,000 shares of common stock outstanding with a book value of $10 and currently selling for $30 a share. They just paid an annual dividend in the amount of $1.60 per share. The constant dividend growth rate is 4%. Jake's also has 6,000 bonds outstanding. The bonds carry a 7% coupon, pay interest semiannually, and mature in 5 years. The bonds are selling at par. There are 5,0008% preferred shares outstanding with a stock price of $80. The company's tax rate is 34%. The current T-bills rate is 3% and the market risk premium is 4%. What is the after-tax cost of debt? 7% 4.6% 10.6% Jake's Sound Systems has 210,000 shares of common stock outstanding with a book value of $10 and currently selling for $30 a share. They just paid an annual dividend in the amount of $1.60 per share. The constant dividend growth rate is 4%. Jake's also has 6,000 bonds outstanding. The bonds carry a 7% coupon, pay interest semiannually, and mature in 5 years. The bonds are selling at par. There are 5,0008% preferred shares outstanding with a stock price of $80. The company's tax rate is 34%. The current T-bills rate is 3% and the market risk premium is 4%. What is the WACC (weighted average cost of capital)? 7.2% 6.2% 8.2% Step by Step Solution
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