Walther Enterprises has a capital structure target of 60 percent common equity, 15 percent preferred stock, and
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Walther Enterprises has a capital structure target of 60 percent common equity, 15 percent preferred stock, and 25 percent long-term debt. Walther’s financial analysts have estimated the marginal, after-tax cost of debt, preferred stock, and common equity to be 9 percent, 15 percent, and 18 percent, respectively. What is the weighted marginal cost of capital for Walther? LO1
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