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Thanks Sapp Trucking's balance sheet shows a total of noncallable $55 million long-term debt with a coupon rate of 7.00% and a yield to maturity

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Sapp Trucking's balance sheet shows a total of noncallable $55 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 $70 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 $75 million. The current stock price is $21.00 per share, stockholders' required return, T., 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 WACCA? O a. 1,38% b. 1.64% O c.0.78% d. 1.04% O e. 1.21%

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