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Blockbuster and Co have recently funded a project through stock (60%) and debt (40%). The...

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Blockbuster and Co have recently funded a project through stock (60%) and debt (40%). The WACC has been estimated to be 9.7%. The required rate of return on its shares is 12% and the marginal tax rate is 15%. Calculate the yield to maturity, Id, on the company's bonds. Show steps in the reasons box. Use our decimal points in your final answer (example: 0.0751) Answer: Give your reasons 7 B I Ft > ili E EE $3 5 C Consider company XYZ that is getting 16% of its funding through bonds and the rest through shares. Its marginal tax rate is equal to 7%. The yield to maturity on its bonds is 5% and the required rate of return on shares is equal to 8%. Calculate the WACC. (write your answer in decimal points, at least three digits after the decimal place) Answer: Give your reasons 7 " B I F E E EE % $

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