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write down the steps and results of each step of the calculation process. 1. (5 points) ABC Inc.'s capital structure is 40% debt, 258 preferred,
write down the steps and results of each step of the calculation process.
1. (5 points) ABC Inc.'s capital structure is 40% debt, 258 preferred, and 35% common equity, and its tax rate is 35%. For financing, (a) ABC sold a non- callable bond several years ago that now has 15 years to maturity with 8% annual coupon, paid semiannually, at a price of $1,065, and a par value of $1,000. (b) ABC sold a perpetual preferred stock for $95.50 per share, with a $7.50 annual dividend and a flotation cost of 3.008 of the price. (c) ABC also has beta - 1.2, risk free rate of return for - 6.00%; market risk premium RPM - 7.008; The question is: What is the company's WACC Step by Step Solution
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