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Question 1 10 pts Suppose a firm has 27 million shares of common stock outstanding at a price of $46.5 per share. The firm also
Question 1 10 pts Suppose a firm has 27 million shares of common stock outstanding at a price of $46.5 per share. The firm also has 500,000 bonds outstanding with a current price of $1191. The outstanding bonds have yield to maturity 9%. The firm's common stock beta is 1.5 and the corporate tax rate is 38%. The expected market return is 15% and the T-bill rate is 2%. What is the WACC for this firm? Weight of Equity (3 docimals) Weight of Debt (3 decimals): Cost of Equity (3 decimals): After tax Cost of Debt (3 decimals): WACC (3 decimals)
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