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You have acquired 40 million dollar by issuing bond. The Yield of Maturity of the bond is 8%: You have also acquired 40 million dollar

You have acquired 40 million dollar by issuing bond. The Yield of Maturity of the bond is 8%:

You have also acquired 40 million dollar by issuing preferred stocks. The net price is 98% of par and the fixed dividend rate is 8%. 

You have also acquired 20 million dollars via a long-term bank loan. The APR is 5%. 

There is no floatation cost of any kind, and your tax rate is 30%.


What is your after tax WACC?

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