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The Saunders Investment Bank has the following financing outstanding Debt 7 6 , 0 0 0 bonds with a coupon rate of 7 . 2
The Saunders Investment Bank has the following financing outstanding
Debt
bonds with a coupon rate of and a current price of $ The bonds have years to maturity
zero coupon bonds with a price of $ and years to maturity.
Preferred stock: shares with a $ dividend and a current price of $
Common stock: shares at a price of $ and an equity beta of
The firms tax rate is the market risk premium is and the riskfree is What is the WACC for bank?
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