Bell Media Has Common Stock Trading at a Price of $74,and

question 101

Multiple Choice

Bell Media has common stock trading at a price of $74,and a market capitalization of $23 billion.The firm also has preferred stock worth a total of $6 billion,currently trading at $54 per share and paying a dividend of $4.50 per share.The firm's beta is 1.2,the risk-free rate is 2.4%,and the market risk premium is 6%.The firm has $28 billion of debt with a yield to maturity of 4%.If the firm's tax rate is 30%,what is Bell's WACC?

• A)6.41%
• B)7.19%
• C)6.61%
• D)7.31%
• E)7.71%

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Definitions:

Somatic

Pertaining to or affecting the body, especially as distinct from the mind or the environment.

Central

Pertaining to the most important or core part of something, often referring to the main or primary focus or system within a larger context.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for action, stress, or emergency situations by activating the fight or flight response.

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, often measured for health diagnostics.