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2. (15 marks). Peacock has a target ratio of 7:2:3 for its common equity, preferred stock, and long term debt. Its cost of equity, preferred
2. (15 marks). Peacock has a target ratio of 7:2:3 for its common equity, preferred stock, and long term debt. Its cost of equity, preferred stock, and long term debt are 15%, 12%, and 7%, respectively. What is Peacock's WACC? If Peacock is offered a project similar to its existing operation with the following estimated free cash flow: Year0 3 4 CF 10000 2000 2000 3000 3000 4000 Would Peacock accept the project
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