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Unformatted text preview: coupon rate, paid semiannually. The bonds have 10 years till maturity and are currently selling at 95% of their $1,000 face value. In addition, V&B has a $5 million loan with a local bank at 13% interest and 100,000 shares of common stock ( = 1.2) selling at $50 per share. The t-bill rate is 6%, the market risk premium is 8%, and the corporate tax rate is 40%. What is Vaughn and Bushnells WACC?...
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This note was uploaded on 03/15/2012 for the course BUS-F 301 taught by Professor T during the Spring '12 term at IUPUI.
- Spring '12