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QUESTION 39 Your em hod 10.000 bonds with a market price of $105 per bond. The firm also has 30,000 common shares outstanding at
QUESTION 39 Your em hod 10.000 bonds with a market price of $105 per bond. The firm also has 30,000 common shares outstanding at a price of $36 per share If the common shares will pay a dividend of $1.20 at the end of the year and thereafter dividends will grow at a rate of 4% If the after tax yield on the firm's bonds is 4%, what is the firm's weighted average cost of capital? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)
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