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Business, 12.08.2020 09:01 icecreamisgood4u

Wohlers Co. considers a project that will require an initial investment of 5 million. It has a target capital structure of 30% debt, 5% preferred stock, and 65% common equity. Wholers Co. has outstanding 20-year noncallable bonds with a face value of $1,000. These bonds have a current market price of $1,181.96 and an annual coupon rate of 13%. The company faces a tax rate of 40%, and can sell shares of preferred stock that pay an annual dividend of $7.50 at a price of $89.25 per share. The company's common stock is currently selling for $22.35 per share and pays a dividend of $2.45 today. The common stock's growth rate is a constant rate of 9.2%. What will be the WACC for the project

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Wohlers Co. considers a project that will require an initial investment of 5 million. It has a targe...
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