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Use this information to answer the following three questions Rogers Communications uses 6 0 % equity and 4 0 % debt for all of its

Use this information to answer the following three questions
Rogers Communications uses 60% equity and 40% debt for all of its financing needs. Shares of the common stock are currently selling at $52. The growth rate of the firm 5 years ago was 7%. Given the recent increase in interest rates, the bonds of the firm are now trading at $850. with an annual coupon rate of 6.5%,20 years to maturity and a face value of $1000. The company has a beta of 1.20 and a 38% marginal tax rate. The market risk premium is 7% and the risk-free rate is 6%.
What is the cost of debt before taxes?
Question 19 options:
7.14%
9.85%
5.33%
8.03%
What is the cost of equity?
Question 20 options:
13.30%
12.80%
15.60%
14.40%
What is WACC?
Question 21 options:
10.63%
9.69%
11.93%
12.49%

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