Consider the following information for GAP, Inc., Debt: 5,500 8.5 percent coupon bonds outstanding, $1,000 par...

Consider the following information for GAP, Inc., Debt: 5,500 8.5 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. Common stock: 115,500 shares outstanding, selling for $55 per share; the beta is 1.17. Preferred stock: 17,000 shares of 7.5 percent preferred stock outstanding, currently selling for $106 per share. Market: 10.5 percent market risk premium and 7 percent risk-free rate. Assume the company's tax rate is 31 percent. Required: Find the WACC. (Do not round your intermediate calculations.)

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jeff jeffy answered 4 months ago

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