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The Delta Company has issued a total of 75,000,000 shares

Question : The Delta Company has issued a total of 75,000,000 shares

The Delta Company has issued a total of 75,000,000 shares of common stock at par(its value to the firm is 75,000,000. The dividend yield is 7 %. The company also has 25,000,000 of bonds(also sold at par) with a coupon rate of 6%. The tax rate for Alpha is 30%. What is its weighted average cost of capital(WACC)?

 

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