Question: Corp has $ 1 2 0 , 0 0 0 , 0 0 0 bonds outstanding that are selling at par. Bonds with similar characteristics
Corp has $ bonds outstanding that are selling at par. Bonds with similar characteristics are yielding percent. The company also has shares of preferred stock which pays dividend of $ every year and shares of common stock outstanding. The preferred stock sells for $ a share. The common stock has a beta of and sells for $ a share. The riskfree rate is percent and the return on the market is percent. The corporate tax rate is percent. What is the firm's weighted average cost of capital? solve with excel
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