You are given the following information for ABC, Inc. Assume the company's tax rate is...
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You are given the following information for ABC, Inc. Assume the company's tax rate is 21%. 40,000 bonds outstanding with 5% YTM. The current bond price is $960. 750,000 shares outstanding, selling for $52 per share; the beta is 0.85. Debt: 1,400,000 shares of preferred stock with a return 7.5%, currently selling for $25 per share. 7% market risk premium and 3.5% risk-free rate. Common stock: Preferred stock: Market: Questions: What is the company's WACC?
You are given the following information for ABC, Inc. Assume the company's tax rate is 21%. Debt: 40,000 bonds outstanding with 5% YTM. The current bond price is $960. Common stock: 750,000 shares outstanding, selling for $52 per share; the beta is 0.85 . Preferred stock: 1,400,000 shares of preferred stock with a return 7.5%, currently selling for $25 per share. Market: 7% market risk premium and 3.5% risk-free rate. Questions: What is the company's WACC
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