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Question 9 of 17 9 points Save Ansa estion 9 Zietlow Corporation has 2.1 million shares of common stock outstanding with a book value per
Question 9 of 17 9 points Save Ansa estion 9 Zietlow Corporation has 2.1 million shares of common stock outstanding with a book value per share of 75$ with a recent divided of 3$. The firm's capital also includes 2900 shares of 4.2% preferred stock outstanding with a par value of 100 and the firms debt include 2250 4.5 percent quarterly bonds outstanding with 25 years maturity issued five years ago. The current trading price of the preferred stock and bonds are 106% of its par value and comomon stock trades for 15$ with a constant growth rate of 5%. The beta of the stock is 1.13 and the market risk premium is 7%. Calculate the after tax Weighted Avergae Cost of Capital of the firm assuming a tax rate of 30% (Must show the steps of calculation) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt V Av V I Q X XG1 T
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