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ABC firm is selling bonds for? $950 a bond with? $1,000 parvalue at? 5% coupon paid annually. The bond will mature in 8 years.Firm is selling? 10,000 such bonds. This firm is also sellingpreferred stock at? $75 per share. Firm is selling? 100,000 suchshares at? 8% dividend with? $100 par value. This firm is alsoraising money by selling another issue of common stocks. The mostrecent dividend was? $4.50 and this firm is expecting to grow at?7% rate per year forever. The current selling price of their stockis? $60 and company is planning to sell? 300,000 shares. EstimateWeighted Average Cost of Capital? (WACC). This firm is in? 40% taxbracket.
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