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What is the current ytm of the bonds

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Question - Wildhorse Co. has a capital structure, based on current market values, that consists of 35 percent debt, 8 percent preferred stock, and 57 percent common stock. If the returns required by investors are 12 percent, 12 percent, and 15 percent for the debt, preferred stock, and common stock, respectively, what is Wildhorse's after-tax WACC? Assume that the firm's marginal tax rate is 40 percent.

You are analyzing the cost of debt for a firm. You know that the firm's 14-year maturity, 7.0 percent coupon bonds are selling at a price of $650.13. The bonds pay interest semiannually. If these bonds are the only debt outstanding for the firm, answer the following questions. What is the current YTM of the bonds?

Reference no: EM133017841

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