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7) The following market information was gathered for the Blender-(Answered)

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7) The following market information was gathered for the Blender Corporation.The ?rm has 1,000 bonds outstanding, each selling for $1,100.00 with a requiredrate 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 of11.00% and the common stock requires a 14.00% return, and the ?rm has acorporate tax rate of 30%, calculate the ?rm's WACC adjusted for taxes.A) 6.77%B) 10.73%C) 9.53%D) There is not enough information to answer this question because there is noinformation provided about the amount of retained earnings held by the ?rm.

 

Paper#9210459 | Written in 27-Jul-2016

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