Question: 09 (7 points) Finding the WACC Dani Corp has 6.4 million shares of common stock outstanding, 200,000 shares of 3.8 percent preferred stock outstanding, par

09 (7 points) Finding the WACC Dani Corp has 6.4 million shares of common stock outstanding, 200,000 shares of 3.8 percent preferred stock outstanding, par value of $100, and 120.000 bonds outstanding with a semiannual coupon of 4.8 percent, par value $1,000 each. The common stock currently sells for $54 per share and has a beta of 1.08, the preferred stock currently sels for $103 per share, and the bonds have 15 years to maturity and sell for 107 percent of par. The market risk premium is 7.5 percent. Treasury-bills are yielding 2.4 percent, and the company's tax rate is 22 percent. 1) What is the firm's market value capital structure? 2) If the company is evaluating a new investment project that has the same level of risk as the fimm's current business, what interest rate should the firm use to discount the project's cash flows

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