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What is the wacc for the tax rate

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Question 1: A Co. would like to estimate the company's cost of capital. It currently bonds outstanding of $40 million that is trading at a discount of 15%. The 20-year pays a coupon of 6% annually and is selling for $850 per face value of $1,000. The company's equity is made of 2 million shares that is trading for $36.67 in the NASDAQ exchange. It paid a dividend of $4.00 recently and its projected growth rate is 10%. What is the WACC if the tax rate is 35%? Ignore floatation costs

Reference no: EM132513581

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