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What is generic co wacc

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John wants to figure out the WACC for Generic Co. John is given the following information concerning Generic Co. Calculate the WACC for Generic Co. :

Debt: $13,791 of 5% coupon bonds outstanding, quoted at 105, with 20 years to maturity. These bonds pay interest semiannually.

Common Stock: 350,000 shares common stock selling for $54.1 per share. The stock has a beta of 1.02

Preferred Stock: 10,000 shares of preferred stock with a dividend of $5.20 per share. It is currently selling at $103.51 per share.

Market: The market premium is 7.5%, and the risk-free rate of return is 2.5%.

tax bracket = 35%

(Round your answer to two decimal places in percentage. For example, if your answer is 0.0547, input your answer as 5.47.) SHOW YOUR WORK IN EXCEL

What is Generic Co.'s WACC?

Reference no: EM133002815

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