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A firm has 3,000,000 shares of common stock outstanding with a market price of $20.00 per share. It has 20,000 bonds outstanding, each selling for $1,100. The bonds mature in 10 years, have a coupon rate of 8.5%, and pay coupons annually. The firm's beta is 1.5, the risk free rate is 5%,and the market risk premium is 9%. The tax rate is 35%. Calculate the WACC.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92425026

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