Determine the weighted average cost of capital

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Reference no: EM131953624

1. Differentiate the types of federal government debt?.

2. Determine the Weighted Average Cost of Capital (WACC) for a firm with the following capital structure

39,000 41.0%cpn bond due 2/1/2019 priced @101.009

47,000 5.05%cpn bonds due 2/1/2042 Priced @102.847

37,000 4.75% ptd's priced @91.15/shr

6,410,000.00 common shares priced @41.60/shr

Additional Market Data

Beta = .95

US T-Bill = 1.05%

Exp. Ret MKt = 10.90%

Tax Rate = 36.40%

Reference no: EM131953624

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