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U Question 8 10 pts You have been assigned to calculate the Weighted Average-Cost-of-Capital for your firm, which has two sources of long-term capital. Continue

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U Question 8 10 pts You have been assigned to calculate the Weighted Average-Cost-of-Capital for your firm, which has two sources of long-term capital. Continue with the values and assumptions outlined above. The company's marginal tax rate is 25%, First, there are 207.500 shares of common stock, which are currently selling for $41 93. Recently, the firm announced EPS of $3.87. You feel that it is reasonable to assume that earnings will grow at 1.35% into the future. Second, there is an issue of 4.500 coupon bonds with a face value of $1.000, which pays 5,10% (annual coupons and mature in eleven years. These bonds are currently trading for $948.07 Second, calculate the yield-to-maturity on the company's bonds. 5.10% 0 5.75% 0.5.35% 4.75%

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