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What is the Weighted Average Cost of Capital Corporate taxes are 21%. The firm is financed with the following securities: Common Equity: 5,000,000 shares price
What is the Weighted Average Cost of Capital Corporate taxes are 21%. The firm is financed with the following securities: Common Equity: 5,000,000 shares price per share = $50 =1.25, Mkt Risk Premium = 5%, Risk-free rate = 4%. Debt: 200,000 bonds face value per bond = $1000 market price per bond= $1075 coupon rate = 6%, 5 years to maturity. Assume a semi-annual payment.
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