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ipt 1 Question 24 (6 points) Listen Saved Given the following information for Jano Corp. find the WACC. Assume the company's tax rate is 35%. Bonds: 10,000 7% coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 102 percent of par; the bonds make semi-annual payments. Preferred shares: 25,000 shares of preferred stock outstanding paying a preferred share dividend of $5.00, currently selling for $65 per share. Common shares: 400,000 shares outstanding, selling for $50 per share; the beta is 1.15. The return on the stock market is: 12% and the risk-free rate is 4%. Market Market Value Weights Cost Bonds Preferred shares Common shares Total WACC - Note: Once you click in the table below, you can drag the dotted triangle at the bottom right corner of the text editor window to make it bigger. If you accidentally delete the below table, you can add a new one using the rich-text editor, or try to make your answer as clear as possible using paragraphs and spaces Cost in % Weighted Format BIU shares Total WACC = Note: Once you click in the table below, you can drag the dotted triangle at the bottom right corner of the text editor window to make it bigger. If you accidentally delete the below table, you can add a new one using the rich-text editor, or try to make your answer as clear as possible using paragraphs and spaces. Format BIU Market Market Weights Cost in Weighted % Cost Value Bonds Preferred shares Common shares WACC = Total 21 Page 4 of 4 Previous Page Next Page

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