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Business, 14.05.2021 02:50 chiquita77

The Ashford Twins hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) The company's noncallable bonds mature in 20 years, have a coupon rate of 7.00% paid annually, a par value of $1,000, and a current market price of $850. (2) The company's tax rate is 28%. (3) The required rate of return on the company's common stock based on CAPM is 10.0%. (4) The target capital structure consists of 20% debt, with the remainder comprised of common equity. What is its WACC

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