Question: Please complete the WACC & corresponding question using the following inputs. Inputs for WACC (Re computed using CAPM only) LT Debt: 10,000 bonds outstanding of

Please complete the WACC & corresponding question using the following inputs. Inputs for WACC (Re computed using CAPM only) LT Debt: 10,000 bonds outstanding of a 5-year maturity; 1035 = PV; 4.8% = Coupon Rate (Semiannual) Common Stock: 48,000 shares outstanding; $28 price today Preferred Stock: 17000 shares, 3.8% dividend yield, $95 share price Other CAPM Information: ERm = 9% Rf= 2.00% Beta = 1.12 Tax Rate = 32% Question: A. What is the WACC? (5 Points) abc} * B. What is the function and use of the WACC? Why is it significant to the value of a firm's project? (2.5 Points)
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