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WACC The following relates to Woods Advantage Club Corporation: Capital Structure: 55% Common equity 20% Preferred stock 25% Debt Additional Information: Corporate tax rate =

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WACC The following relates to Woods Advantage Club Corporation: Capital Structure: 55% Common equity 20% Preferred stock 25% Debt Additional Information: Corporate tax rate = 40% Preferred stock dividend = $6.00 Expected common share dividend = $2.50 Expected constant growth rate = 6.00% Bond coupon rate = 10.00% Bond yield to maturity = 7.50% Price of preferred stock = $120.00 Price of common stock = $85.00 What is the weighted average cost of capital for WAC Corporation? Select one a. 6.7% 6. 7A C79 After 20 years, 100 shares of stock originally purchased for 51000 was sold for 55,000. What was the yield on the investment? Choose the closest answer. Select one O A. 19% OBS O C. 12.7% O 0.8%

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