A firm has $9.8 Billion debt outstanding, with a yield to maturity of 5.1% and...
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A firm has $9.8 Billion debt outstanding, with a yield to maturity of 5.1% and a coupon rate of 5.8%. They have 122 million preferred shares outstanding, currently trading at $81.22. They also have 869 million common shares outstanding, currently trading at $44.27 and the corporate tax rate is 20%. If the return on common stock (return on equity) is 8.8% and the return on preferred stock is 7.8% what is the Weighted Average Cost of Capital (WACC)
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