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The following market information was gathered for the Rogue Corporation. The firm has 5,000 bonds outstanding, each selling for $1,050.00 with a required rate of
The following market information was gathered for the Rogue Corporation. The firm has 5,000 bonds outstanding, each selling for $1,050.00 with a required rate of return of 7.00%. Rogue has 3,000 shares of preferred stock outstanding, selling for $60.00 per share and 80,000 shares of common stock outstanding, selling for $24.00 per share. If the preferred stock has a required rate of return of 9.00% and the common stock requires a 11.00% return, and the firm has a corporate tax rate of 20%, calculate the firm's WACC adjusted for taxes.
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