Question: One of your friends needs your help in computing the cost of capital for a company. She has the following information about the company. What

 One of your friends needs your help in computing the cost

One of your friends needs your help in computing the cost of capital for a company. She has the following information about the company. What is the company's weighted average cost of capital (WACC)? Long-term debt outstanding (trading at par) $300,000 Current yield to maturity 9% Number of shares of common stock outstanding 20,000 Book value per share $10 Market value per share $20 Expected rate of return on stock 12% Tax rate 40% A) 10.71% B) 9.17%. C) 11.10%. D) 10.50%. 7) Brown's Dairy just issued a 10-year 12% coupon bond. The face value of the bond is $1000 and the bond makes semiannual coupon payments. If the bond is currently trading at 126.725 percent of face value, what is the bond's yield to maturity? A) 8.06% B) 12.00% C) 14.38% D) 4.03%

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