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Question 2 of 6 1 Points What should be proportion of common equity financing (Ws) in WACC computations for a firm with $50 million par
Question 2 of 6 1 Points What should be proportion of common equity financing (Ws) in WACC computations for a firm with $50 million par value in bonds (debt) but these 4 years bonds with coupon rate 3% has a yield to maturity at 7.476%. The firm also has $50 million book value of equity but its stock price is selling at $57.50 per share and there are one million shares of stock outstanding? Tax rate is 35%. A. 70.296 B. 42.5% C. 60.5% OD 29.8% E. 57.5%
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