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Q2: A firm has the following data: target capital structure of 25% debt, 10% preferred stock, and 65% common equity; tax rate = 40%; rd
Q2: A firm has the following data: target capital structure of 25% debt, 10% preferred stock, and 65% common equity; tax rate = 40%; rd = 7%; rps = 7.5%; and rs = 11.5%. Assume the firm will not issue new stock. What is this firm's WACC? A firm has common stock with D1 = $3.00; PO = $30; g = 5%; and F = 4%. If the firm must issue new stock. what is its cost of external equity, re? A company's bond yield is 7%. If the appropriate own-bond-yield risk premium is 3.5%. what is rs
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