The Saunders Investment Bank has the following financing outstanding. Debt: 51,000 bonds with a coupon rate...

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The Saunders Investment Bank has the following financingoutstanding. Debt: 51,000 bonds with a coupon rate of 4.7 percentand a current price quote of 106.3; the bonds have 13 years tomaturity and a par value of $1,000. 17,100 zero coupon bonds with aprice quote of 27.3, 29 years until maturity, and a par value of$10,000. Both bonds have semiannual compounding. Preferred stock:146,000 shares of 3.8 percent preferred stock with a current priceof $93 and a par value of $100. Common stock: 2,120,000 shares ofcommon stock; the current price is $83 and the beta of the stock is1.15. Market: The corporate tax rate is 21 percent, the market riskpremium is 6.7 percent, and the risk-free rate is 3.1 percent. Whatis the WACC for the company?

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The Saunders Investment Bank has the following financingoutstanding. Debt: 51,000 bonds with a coupon rate of 4.7 percentand a current price quote of 106.3; the bonds have 13 years tomaturity and a par value of $1,000. 17,100 zero coupon bonds with aprice quote of 27.3, 29 years until maturity, and a par value of$10,000. Both bonds have semiannual compounding. Preferred stock:146,000 shares of 3.8 percent preferred stock with a current priceof $93 and a par value of $100. Common stock: 2,120,000 shares ofcommon stock; the current price is $83 and the beta of the stock is1.15. Market: The corporate tax rate is 21 percent, the market riskpremium is 6.7 percent, and the risk-free rate is 3.1 percent. Whatis the WACC for the company?