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XYZ Corporation has 3 , 5 0 0 bonds outstanding, each selling for $ 1 , 0 4 5 . 0 0 with a required

XYZ Corporation has 3,500 bonds outstanding, each selling for $1,045.00 with a required
rate of return of 4.50%. It has 5,000 shares of preferred stock outstanding, selling for
$55.00 per share, and 60,000 shares of common stock outstanding, selling for $18.00 per
share. If the preferred stock has a required rate of return of 6.50% and the common stock
requires a 9.00% return, and the firm has a corporate tax rate of 28%, calculate the firm's
WACC adjusted for taxes.

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