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The capital structure for Melody Consulting, Inc. consists of bonds ( 9 % coupon, $ 1 , 0 0 0 face value, 1 2 years
The capital structure for Melody Consulting, Inc. consists of bonds coupon, $ face value, years to maturity, $ current market price preferred stock shares outstanding, $ par value, $ annual preferred dividend, $ current market price and common stock $ current market price The firm's plan for future financing is to use a mix of debt, preferred stock and common stock. Flotation costs are a percent of market value for a new bond issue, b $ per share for common stock, and c $ per share for preferred stock. The dividends for common stock were $ last year and are projected to have an annual growth rate of The company estimates that there will be sufficient internal equity such that it does not plan to issue new stock. The firm is in a tax bracket. What is the weighted average cost of capital?
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