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The following market information was gathered for the Blender Corporation. The firm has 1,000 bonds outstanding, each selling for $1,100 with a required rate of
The following market information was gathered for the Blender Corporation. The firm has 1,000 bonds outstanding, each selling for $1,100 with a required rate of return of 8%. Blender has 5,000 shares of preferred stock outstanding, selling for $40 per share and 50,000 shares of common stock outstanding, selling for $18 per share. If the preferred stock has a required rate of return of 11.00% and the common stock requires a 14.00% return, and the firm has a corporate tax rate of 30%, calculate the firm's WACC adjusted for taxes.
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