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dalvirb dalvirb
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2 months ago
A firm has a capital structure that uses 45% equity, 20% preferred shares, and 35% debt. The preferred shares have a current yield of 5.5%. The debt has a coupon rate of 10% and a current yield to maturity of 6.5%. The common shares have a yield of 8%. Ignoring income taxes, what is the firm's WACC?

▸ 7.275%

▸ 6.975%

▸ 6.575%

▸ 8.200%
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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edwardssheedwardsshe
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