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:

Client Specification

Detailed requirements provided by a client regarding the desired features and standards for a project or product.

Resources

Assets, materials, or inputs used in the process of achieving goals or completing projects, including human skills, technology, and financial assets.

Mean

A statistical measure representing the average value of a set of numbers, calculated as the sum of all the values divided by the number of values.

Standard Deviations

A statistical measure that quantifies the amount of variation or dispersion of a set of values.