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25 points A company's corporate structure consists of: Debt Preferred stock Common equity $200,000 70,000 730,000 Find weights: Find cost of debt; if new debt

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25 points A company's corporate structure consists of: Debt Preferred stock Common equity $200,000 70,000 730,000 Find weights: Find cost of debt; if new debt is issued at a 3% cost to the company, have a 10 year maturity and a 7.2% coupon rate. (assume annual payments), marginal tax rate is 35%. Tp = Dp Pnet Find the cost of preferred stock; if it pays $5.10 per share, sold the public at $62, issuance costs of $2 per share

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