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To help finance a major expansion, a company sold a noncallable bond several years ago that now has 30 years to maturity. This bond has
To help finance a major expansion, a company sold a noncallable bond several years ago that now has 30 years to maturity. This bond has a 10% annual coupon, paid semiannually, it sells at a price of $1,025, and it has a par value of $1,000. the firm's target capital structure is 30% debt and 70% common equity with the cost of equity being 15 %. if the firm tax rate is 35%. what is the firm's WACC,? A. 12.40% B. 16.69% C. 14.20% D. 18.93% E. 6.96%
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