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Compute the wacc for the company

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A company has 8 million common shares outstanding priced at $14.625 each

Next year's dividend on these shares is expected to be $2.71, and will grow at 5% per year forever

The company also has 60,000 bonds outstanding, each with a coupon rate of 12% and are priced at $1,050 each to yield 8% to bondholders

The corporate income tax rate is 34%.

Compute the WACC for the company.

Reference no: EM132104896

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