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1a) The component cost of the capital structure for Red Roc corporation have been computed: KD = 8.3%, Kp = 9.2%, and Ke = 14.5%.
1a) The component cost of the capital structure for Red Roc corporation have been computed: KD = 8.3%, Kp = 9.2%, and Ke = 14.5%. according to its latest balance sheet, Wilhelmi corporation has debt with a book value of $200,000 preferred stock with a book value of $40,000 and common equity for Red Roc with a book value of $60,000. What is the weighted average cost of capital for Red Roc corporation using book value weights? 1b) The component cost of the capital structure for Red Roc corporation have been computed: KD = 8.3%, Kp = 9.2%, and Ke = 14.5%. Red Roc corporation has debt with a market value of $150,000 preferred stock with a market value of $50,000, and common equity with a market value of $100,000. What is the weighted average cost of capital for Red Roc Corporation using market value weights
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