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****PLEASE SHOW IN EXCEL****2.Western Trans Corporation has 7,500 bonds outstanding with a facevalue of $1,000 per bond. The bonds carry a 7 percent coupon, payinterest semiannually, and mature in 7.5 years? The bonds areselling at 98 percent of face value. The firm also has 250,000shares of common stock outstanding at a market price of $28 ashare. Next year's annual dividend is expected to be $1.55 a share.The dividend growth rate is 2 percent. The company's tax rate is 34percent. What is the firm's weighted average cost of capital? Showall your work.A. 4.57%B. 5.44%C. 6.16%D. 7.11%E. 8.99%
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