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The big house company has 70 million of common stock wit a beta of 1.5, $20 million in debt with a coupon rate of 3%
The big house company has 70 million of common stock wit a beta of 1.5, $20 million in debt with a coupon rate of 3% and $10 million in preferred equity with a price of $30 and a dividend of $1.80. What is the after tax WACC?
Assume: Risk free rate =3% Equity market risk premium =7% Tax rate=21%
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