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20. You are given the following information for Fiala Industries Debt

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20. You are given the following information for Fiala Industries:

• Debt: 7000 8.5 % coupon bonds outstanding, with 20 years to maturity and a quoted price of 98. The bonds pay interest semiannually.

• Common stock: 220,000 shares of common stock selling for $60 per share. The stock has a beta of .90 and will pay a dividend of $1.80 next year. The dividend is expected to grow at 6% per year indefinitely.

• Preferred stock: 9000 shares of 6.5% preferred stock selling at $94 per share.

• Market: A 12% expected return, a 5% risk free rate and a 35% tax rate.

What is the WACC for Fiala Industries
Submitted: 6 years ago.
Category: Homework
Expert:  Annie Kavitha replied 6 years ago.

Hello JACUSTOMER-avqud2i6,

 

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Customer: replied 6 years ago.

For some reasons, i can't download your file. can you just write down your answer in step so i'm able to see it right away instead of downloading the solution? Thank you

Expert:  Annie Kavitha replied 6 years ago.

Try this

 

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Customer: replied 6 years ago.
still not working
Expert:  Annie Kavitha replied 6 years ago.
THIS ANSWER IS LOCKED!

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