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QUESTION 18 Firm XYZ has the following capital structure Debt: Book value $220m Market value = $250m Coupon rate -8% Yield to Maturity - 6%

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QUESTION 18 Firm XYZ has the following capital structure Debt: Book value $220m Market value = $250m Coupon rate -8% Yield to Maturity - 6% . Preferred Stock Book value = $75m Market value =$75m Required Rate of Retur -9% Common Stock Book value = $150m Market value $300m Required Rate of Retum - 12% Assume that the corporate tax rate is 35%. What is the firm's WACC? a. 8.40% b. 7.49% C. 8.13% d. 9.24% e. 8.92% QUESTION 19 Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBo. esc 80 doo F2 F3 FA

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