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Sapp Trucking's balance sheet shows a total of noncallable $ 6 0 million long - term debt with a coupon rate of 7 . 0

Sapp Trucking's balance sheet shows a total of noncallable $60 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 6.00%. This debt currently has a market value of $75 million. The balance sheet also shows that the company has 10 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $100 million. The current stock price is $17.50 per share; stockholders' required return, rs, is 14.00%; and the firm's tax rate is 25%. The CFO thinks the WACC should be based on market value weights, but the president thinks book weights are more appropriate. What is the difference between these two WACCs?
a.0.60%
b.0.71%
c.0.45%
d.0.34%

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