=+a. Over the relevant ranges noted in the following table, calculate the after-tax cost of each source

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=+a. Over the relevant ranges noted in the following table, calculate the after-tax cost of each source of financing needed to complete the table.

Source of capital Range of new financing After-tax cost (%)
Long-term debt $0–$700,000 $700,000 and above Preferred stock $0 and above Common stock equity $0–$1,300,000 $1,300,000 and above

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