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QUESTION 11 Assume the following capital structure: - Common Stock - Book value =$150m - Market value =$300m - Required Rate of Retum =12% -
QUESTION 11 Assume the following capital structure: - Common Stock - Book value =$150m - Market value =$300m - Required Rate of Retum =12% - Debt: - Book value =$160m - Market value =$190m - Coupon rate =8% - Yield to Maturity =6% - Preferred Stock - Book value =$75m - Market value =$75m - Required Rate of Retum =9% If the corporate tax rate is 35%. What is your firm's WACC? a. 8.88% b. 8.05% c. 8.59% d. 9.32% e. 9.58% Click Save and Submit to save and submit. Click Save All Answers to save all answers
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