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Question 6 1 pts A corporation has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity, a $1,000 face value, and

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Question 6 1 pts A corporation has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity, a $1,000 face value, and a $1,100 market price. . The company's 100,000 shares of preferred stock pay a quarterly dividend of 75 cents, and sell for $30 per share. The company's 500,000 shares of common stock sell for $25 per share and have a beta of 1.5. The risk free rate is 4%, and the market return is 12%. Assuming a 21% tax rate, what is the company's Cost of Equity? A) 8% B) 4% C)16% D) 11% E) 9% OD OE

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