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What is the WACC

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Question - A firm has a pretax cost of debt of 3.75% with 200,000 bonds outstanding at $990 per bond, a cost of common equity of 9% with 8,000,000 shares outstanding at $27 per share, and 100,000 shares of preferred equity outstanding. The preferred equity has a par value of $100, pays a dividend equal to 3% of par, and a has a current market price of $50. The combined federal and state tax rate is 26%. What is the WACC?

Reference no: EM133033524

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