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The following information is available: Common Stock: 10,000 shares priced at $40 per share with a beta of 1.5 Preferred Stock: 500 shares priced at
The following information is available:
Common Stock: 10,000 shares priced at $40 per share with a beta of 1.5
Preferred Stock: 500 shares priced at $100 and a dividend yield of 4%.
Bonds: 250, 10 year, 8% semi-annual Bonds outstanding issued 2 years ago priced at $1,050.
Market: T-Bill rate = 2%, Market Rate = 6%, Tax Rate = 35%
What is the Weighted Average Cost of Capital (WACC)?
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