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Use the following data for the next 5 questions: Debt 50,000 bonds with a 5.0% coupon rate, payable annually, 15 years to maturity, selling at

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Use the following data for the next 5 questions: Debt 50,000 bonds with a 5.0% coupon rate, payable annually, 15 years to maturity, selling at $1,050 per bond. Common Stock 1,000,000 shares of common stock outstanding. The stock sells for a price of $65 per share and has a beta of 1.1 Preferred Stock 150,000 preferred shares outstanding, currently trading at $90 per share; with an annual dividend payment of $6.50 The market risk premium is 7% and the risk free rate is 2.5% Market Tax Rate 35% The before tax cost of debt is: 6.50% 6.85% 4.53% 5.91% The after tax cost of debt is: O 2.94% 4.79% 2.08% O 3.79% 3.50% The company's cost of preferred stock is: 6.05% 7.06% O 7.50% 8.40% O 7.22% The company's cost of common stock is: 8.50% 9.42%. km 12.18% O 10.20% 11.50% Still referring to the above chart, the company's weighted average cost of capital (WACC) is: 6.98% 7.59% 9.66% 12.04% 10.66%

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