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Q1) Suppose a firm has 29.00 million shares of common stock outstanding at a price of $11.97 per share. The firm also has 130000.00 bonds
Q1) Suppose a firm has 29.00 million shares of common stock outstanding at a price of $11.97 per share. The firm also has 130000.00 bonds outstanding with a current price of $947.00. The outstanding bonds have yield to maturity 9.53%. The firm's common stock beta is 1.188 and the corporate tax rate is 40.00%. The expected market return is 13.90% and the T-bill rate is 1.37%. Compute the following
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