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Business, 30.10.2021 06:10 breemills9953

The Saunders Investment Bank has the following financing outstanding. Debt: 56,000 bonds with a coupon rate of 5.2 percent and a current price quote of 107.3; the bonds have 11 years to maturity and a par value of $1,000. 18,100 zero coupon bonds with a price quote of 26.5, 28 years until maturity, and a par value of $10,000. Both bonds have semiannual compounding. Preferred stock: 151,000 shares of 3.3 percent preferred stock with a current price of $88 and a par value of $100. Common stock: 2,220,000 shares of common stock; the current price is $88 and the beta of the stock is 1.20. Market: The corporate tax rate is 21 percent, the market risk premium is 7.2 percent, and the risk-free rate is 3.1 percent. What is the WACC for the company

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