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The IPO Investment Bank has the following financing outstanding. What is the WACC for the company? Debt: 8 0 , 0 0 0 bonds with
The IPO Investment Bank has the following financing outstanding. What is the WACC for the company?
Debt: bonds with a coupon rate of percent and a current price quote of ; the bonds have years to maturity. zero coupon bonds with a price quote of and years until maturity. Bot bonds have a par value of $ and semiannual coupons.
Preferred Stock: shares of percent preferred stock with a current price of $ and a par value of $
Common stock: shares of common stock; the current price is $ and the beta of the stock is
Market: the corporate tax rate is percent, the market risk premium is percent, and the riskfree rate is percent.
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