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WACC (weighted average cost of capital) The market value of: The company will contract...

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karleen-jo | Student, Undergraduate | eNotes Newbie

Posted April 7, 2013 at 2:54 AM via web

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WACC (weighted average cost of capital)

The market value of:

The company will contract a new loan in the sum of $2,000,000 that is secured by machinery and the loan has an interest rate of 6 percent. Also issued 4,000 new bond issues with an 8% coupon, paid semiannually and matures in 10 years. The bonds were sold at par.

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