The Saunders Investment Bank has the following financing outstanding. Debt: 59,000 bonds with a coupon rate of...

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Finance

The Saunders Investment Bank has the following financingoutstanding.
Debt: 59,000 bonds with a coupon rate of 5.2 percent and acurrent price quote of 106.3; the bonds have 14 years to maturityand a par value of $1,000. 18,700 zero coupon bonds with a pricequote of 21.4, 28 years until maturity, and a par value of $10,000.Both bonds have semiannual compounding.
Preferred stock: 154,000 shares of 3 percent preferred stockwith a current price of $85 and a par value of $100.
Common stock: 2,280,000 shares of common stock; the currentprice is $91 and the beta of the stock is 1.15.
Market: The corporate tax rate is 24 percent, the market riskpremium is 7.2 percent, and the risk-free rate is 3.4 percent.
What is the WACC for the company? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)

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The Saunders Investment Bank has the following financingoutstanding.Debt: 59,000 bonds with a coupon rate of 5.2 percent and acurrent price quote of 106.3; the bonds have 14 years to maturityand a par value of $1,000. 18,700 zero coupon bonds with a pricequote of 21.4, 28 years until maturity, and a par value of $10,000.Both bonds have semiannual compounding.Preferred stock: 154,000 shares of 3 percent preferred stockwith a current price of $85 and a par value of $100.Common stock: 2,280,000 shares of common stock; the currentprice is $91 and the beta of the stock is 1.15.Market: The corporate tax rate is 24 percent, the market riskpremium is 7.2 percent, and the risk-free rate is 3.4 percent.What is the WACC for the company? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)