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You have been assigned to calculate the Weighted Average-Cost-of-Capital for your firm, which has two sources of long-term capital. Continue with the values and assumptions

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You have been assigned to calculate the Weighted Average-Cost-of-Capital for your firm, which has two sources of long-term capital. Continue with the values and assumptions outlined above. The company's marginal tax rate is 28% First, there are 6,500,000 shares of common stock, which are currently selling for $153.12. You estimate the Bets of the firm's stock is 0.85. The current return on short-term T-Bills is 2.15%, and you feel that a reason assumption about the Market Risk Premium is 8.75% Second, there is an issue of 260,000 coupon bonds with a face value of $1,000, which pays 6.35% (annual) coupons, and mature in twenty-three years These bonds are currently trading for $118210 What is the firm's weighted average-cost-of-capital? (The answer is a percent, round your answer to two decimal places, es 475) Numeric Response

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