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stranahan stranahan
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7 years ago
The following market information was gathered for the Blender Corporation. The firm has 1,000 bonds outstanding, each selling for $1,100.00 with a required rate of return of 8.00%. Blenders has 5,000 shares of preferred stock outstanding, selling for $40.00 per share and 50,000 shares of common stock outstanding, selling for $18.00 per share. If the preferred stock has a required rate of return of 11.00% and the common stock requires a 14.00% return, and the firm has a corporate tax rate of 30%, then calculate the firm's WACC adjusted for taxes.
A) 10.73%
B) 9.53%
C) 6.77%
D) There is not enough information to answer this question because there is no information provided about the amount of retained earnings held by the firm.
Textbook 
Financial Management: Core Concepts

Financial Management: Core Concepts


Edition: 2nd
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FatherHyenaFatherHyena
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7 years ago
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stranahan Author
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7 years ago
Thanks Smiling Face with Open Mouth and Tightly-closed Eyes
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4 years ago
TY
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3 years ago
thank you
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