Question: Ity Tools Student Tools Need Help? Lydia Gaffner Use the following information to calculate the weighted average cost of capital. For full credit, please show

Ity Tools Student Tools Need Help? Lydia Gaffner Use the following information to calculate the weighted average cost of capital. For full credit, please show all work. Debt: 20,000 bonds outstanding; 7% coupon rate; semi-annual interest payments; 15 years to maturity, current price of $990 per bond Stock: 500,000 shares outstanding; current price of $52.00 per share; no annual dividend; beta of 1.2 Market information: 3-month T-bill rate of 3.0%; expected return on S&P 500 of 12.0%; expected return on bond index of 7.0%; corporate tax rate of 21% (13 points) n

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