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Q1 1. A company has 6,000 bonds outstanding with 10 years to maturity. These bonds have a $1,000 face value, a 10 percent coupon (per

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Q1 1. A company has 6,000 bonds outstanding with 10 years to maturity. These bonds have a $1,000 face value, a 10 percent coupon (per annum). The bonds are quoted at 100 percent of their face value. The company has 1,100,00 shares outstanding. The book value per share is $7 while the market price is $ 21.50 per share. The company has the leverage beta of 1.54 and faces a tax rate of 19%. The market quotations show that the Company's share price rose 35% last year and analysts expect 25% growth in the next years. The main stock index on this capital market performs 14% yearly and TBond rate is 7%. Calculate the cost of common stock equity using the capital asset pricing model (CAPM), the cost of debt (after tax), and the weight average cost of capital (WACC) for this Company. The Company's cost of common equity is equal % - The Compa ny's cost of debt after tax is equal - The Compa ny's weighted average cost of capital is equal

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