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Question 6 ( 1 5 marks ) NW Power Corp., who has a 3 5 % tax rate, presented you with the following information: Debt:
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NW Power Corp., who has a tax rate, presented you with the following information:
Debt: of coupon bonds outstanding, $ par value, years to maturity, and selling for of par; the bonds make semiannual payments.
Common stock: shares outstanding and selling for $ per share; the beta is
Preferred stock: outstanding shares of $ preferred stock currently selling for $ per share.
Market: market risk premium and riskfree rate.
Calculate the weighted average cost of capital.
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