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medicom co. has 6,500 bonds outstanding that are selling at96.5% of par, paying semiannual coupon of 4.8% with 2 yearsremaining to maturity. the company also have 48,000 shares of 5.5%preferred stock at 75,000 shares of common stock outstanding .thepreferred stock sells for $64 a share. the common stock has a betaof 1.32 and sells for $41 a share.the preferred stock has a statedvalue of $100. the risk free rate is 2.2% and the market riskpremium is 8.4%. the corporate tax rate is 21 percent. a. what isthe weighted average cost of capital ?
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