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You are tasked with estimating the WACC for your employer. There is one bond issue with 17 years to maturity, a $600,000 face value, and

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You are tasked with estimating the WACC for your employer. There is one bond issue with 17 years to maturity, a $600,000 face value, and 4% coupon rate, payable semi-annually. The bonds' quoted price is 113.24. There are 900 preferred shares outstanding. Each share, with a current price of $700, pays an annual $35 dividend. There are 50,000 common shares outstanding with a current price of $45 per share. Last week, the board issued a $5.00 dividend per common share. Cash dividends are expected to indefinitely grow at 2% per year. The corporate tax rate is 30%. Calculate the WACC for the company. A. Cost of common share equity (nearest 1/100 of one percent without % symbol, e.g. 6.98)? B. Cost of preferred share equity (nearest 1/100 of one percent without % symbol, e.g. 6.98)? C. Cost of debt (nearest 1/100 of one percent without % symbol, e.g. 6.98)? D. Weighting of common share equity (nearest 1/100 of one percent without % symbol, e.g. 6.98)? E. Weighted average cost of capital (nearest 1/100 of one percent without % symbol, e.g. 6.98)

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