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Spellman Transportation has 1 0 million shares of common stock that are selling at $ 2 2 . 5 0 per share. The required rate

Spellman Transportation has 10 million shares of common stock that are selling at $22.50 per share. The required rate of return of the stock is 14%. Their bond has a yield to maturity of 6.00%, and all their bonds currently have a market value of $50 million. If the firm's tax rate is 40%, what is its WACC?
12.11%
9.75%
11.45%
8.27%
6.00%
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Common stock's required rate of return is the cost of equity.
Bond's yield to maturity is the (before tax) cost of debt.
The firm has no preferred stock.
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