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What is a firm's weighted-average cost of capital if the stock has a beta of 1.5, Treasury bills yield 3%, and the market portfolio offers
What is a firm's weighted-average cost of capital if the stock has a beta of 1.5, Treasury bills yield 3%, and the market portfolio offers an expected return of 8%? Debt that has a yield to maturity of 7.5%. The firm is in the 25% marginal tax bracket. The cost of preferred stock is 8%. The following are the market values of 1) debt $8million, 2) preferred stock $6million. The company has 1,500,000 shares and the current market price of common stock is $25 per share. Find the WACC
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