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You are an established financial consultant and you have been asked to estimate the weighted...

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Finance

You are an established financial consultant and you have been asked to estimate the weighted average cost of capital (WACC) for Winterfell Inc., a large real estate company. After researching the financial position of the company, you have discovered the following; 1. Bonds - Winterfell has 2,500 of $1,000 face value bonds outstanding. The bonds carry a 5% coupon rate with interest paid semi-annually. At their current market price of $92.89 per bond, they are priced to provide a yield to maturity of 7%. The bonds have 10 years remaining until maturity.

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