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The common stock and debt of Windows Phone Corp. are valued at $42 million and $35 million, respectively. Investors currently require a 11% return on

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The common stock and debt of Windows Phone Corp. are valued at $42 million and $35 million, respectively. Investors currently require a 11% return on the common stock and an 9% return on the debt. There are no taxes Calculate the weighted average cost of capital. Enter your answer as a percentage. Do not include the percentage sign in your ariswers. Enter your answer rounded to 2 DECIMAL. PLACES. WACC= correct response: 10.090.02 Click "Verify" to proceed to the next part of the question. This question has 3 parts, so you will be cilcking verify 3 times. If Windows Phone Corp. issues an additional $10 million of debt and uses this money to retire common stock, what wili be the expected return on the stock? Assume that the change in capitai structure does not affect the risk of the debt, and recall that the WACC under the initial capital structure is 10.09%. Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your answer rounded to 2 DECIMAL PLACES. A firm currently has a debt-equity ratio of 1. The debt, which is virtually riskless, pays an interest rate of 4%. The expected rate of return on the equity is 12%. What is the Weighted-Average Cost of Capital if the firm pays no taxes? Enter your answer as a percentage rounded to two decimal places, Do not include the percentage sign in your answer. WACC = Section Altempt 1 of 1 Marcus Corporation is currently all equity financed and has a value of $95 million. Investors currently require a refurn of 12.80 percent on common stock. Marcus pays no taxes. Marcus plans to issue $15 million of debt with a retum of 4.2 percent and use the proceeds to repurchase common stock. What will be the value of the firm after the debt issue? Please state your answer in millions. Enter your response below. milision This question has 4 parts, so you will be clicking verify 4 times. Section Altempt 1 of 1

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