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The company tas three source of long-term capital Its marenal tax rate is 21%. Fitsh, there ate 2.354,000 shares ef common stock outstandine, which are

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The company tas three source of long-term capital Its marenal tax rate is 21%. Fitsh, there ate 2.354,000 shares ef common stock outstandine, which are currently tradies at $37.51 per share. You estimute that your firm has a beta of 0.90, and that the long term return in equity makets will be 11.50%. The current retum on short-term T. Bais is 2.25%. Second, the Irm has 190,000 shares of preferred stock outstanding. These shares pay annual (perpetuai) dividends of 57.00 per share, and are cumendy selling for $94.62. Third, there a an ksue of 62.500 coupon bonds outstanding, These bonds hwe a face value of 51.000 , mature in seventeen years, and pay 5.74% annoul coupons. These instruments are currently trading for $1,054.23. Based on the data provided estimate the firm's Welehted-Averape-Cost-of-Capital (WACC) o.t1k a then 720x

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