You are looking at the following information: Debt: 3,500 5.5 percent coupon bonds outstanding, $1,000 par value, 18 years...

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Finance

You are looking at the followinginformation:
Debt:
3,500 5.5 percent coupon bonds outstanding, $1,000 par value, 18years to maturity, selling for 103 percent of par; the bonds makesemiannual payments.
Common stock:
73,500 shares outstanding, selling for $56 per share; the betais 1.17.
Preferred stock:
12,500 shares of 4.5 percent preferred stock outstanding,currently selling for $105 per share.
Market:
6.5 percent market risk premium and 4 percent risk-freerate.

The company is in the 32 percent tax rate bracket basedon its corporate income.
Required:
Find the WACC
7.42%
8%
7.73%
7.23%
7.33%

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You are looking at the followinginformation: Debt:3,500 5.5 percent coupon bonds outstanding, $1,000 par value, 18years to maturity, selling for 103 percent of par; the bonds makesemiannual payments.Common stock:73,500 shares outstanding, selling for $56 per share; the betais 1.17.Preferred stock:12,500 shares of 4.5 percent preferred stock outstanding,currently selling for $105 per share.Market:6.5 percent market risk premium and 4 percent risk-freerate. The company is in the 32 percent tax rate bracket basedon its corporate income. Required:Find the WACC7.42%8%7.73%7.23%7.33%

Debt:	3,500 5.5 percent coupon bonds outstanding, $1,000 par value, 18years to maturity, selling for 103 percent of par; the bonds makesemiannual payments.
Common stock:	73,500 shares outstanding, selling for $56 per share; the betais 1.17.
Preferred stock:	12,500 shares of 4.5 percent preferred stock outstanding,currently selling for $105 per share.
Market:	6.5 percent market risk premium and 4 percent risk-freerate.