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tax cost of debt cost of preferred stock cost of common stockWACCyour answer only in the box you cannot attach filesViduka Construction's CFO wants to

tax cost of debt cost of preferred stock cost of common stockWACCyour answer only in the box you cannot attach filesViduka Construction's CFO wants to estimate the company's WACC. She has collected the following information: The company currently has 20-year bonds outstanding. The bonds have an 8.5 percent annual coupon, a face value of $1,000, and they currently sell for $945. The company's stock has a beta =1.20.The market risk premium, ku- Kar, equals 5 percent.The risk-free rate is 6 percent.The company has outstanding preferred stock that pays a $2.00 annual dividend. The preferred stock sells for $25 a share.: The company's tax rate is 40 percent.The company's capital structure consists of 40 percent long-term debt, 40 percent common stock, and 20 percent preferred stock.

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