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Q1: The following table sets out the book values and current market values of ABC company debt and equity. Book Value Market Value Bond $200,000
Q1: The following table sets out the book values and current market values of ABC company debt and equity. Book Value Market Value Bond $200,000 $182,332.38 Preference Shares $2,000,000 $7,200,000 Ordinary Shares $2,500,000 $15,750,000 Other Information: The required rate of return for preference and ordinary shareholders are currently 11% and 15%, respectively. The yield to maturity of the bond is 9% The company's tax rate is 30%. What is the after tax Weighted Average Cost of Capital
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