Calculate the wacc for this firm

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Debt: 9,300 6.5 percent coupon bonds outstanding. $1,000 par value, 22 years to maturity, selling for 104.75 percent of par, the bonds make semiannual payments.

Common stock: 240,000 shares outstanding, selling for $64.80 per share, beta is .88 and will pay a dividend of $3.00 next year.The dividend is expected to grow by 5.3% per year indefinitely.

Preferred stock: 8,300 shares of 4.65 percent preferred stock outstanding, currently selling for $94.30 per share.

Market: A11.70 percent expected return, a 5.3 percent risk-free rate, and a 38 percent tax rate.

Calculate the WACC for this firm.

Reference no: EM13271147

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