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We have the following information regarding Company Done-It-All: It has $32 million of debt, $12 million of preferred stocks, and $62 million common equity. The
We have the following information regarding Company Done-It-All:
- It has $32 million of debt, $12 million of preferred stocks, and $62 million common equity.
- The companies currently has 30-year, 6%, semiannual coupon bonds selling at $1,210.
- The company has a beta of 1.1, the market expected return is 13.75%, and the risk-free rate is 5.65%.
- The company's preferred stocks, which pay 5% of the $100 par value as interests every year, is currently selling at $50.
- The company pays 35% in corporate income tax.
What's the company's WACC?
Note: your answer should be in the XX.XX% format, with the XX.XX part put into the answer box and the "%" put into the unit box.
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