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44. Smith Electronics, Inc. has determined its cost of each source of capital and its optimal capital structure, which is composed of the following sources
44. Smith Electronics, Inc. has determined its cost of each source of capital and its optimal capital
structure, which is composed of the following sources and target market value proportions:
Source of Capital | Target Market Proportions | After-Tax Cost |
Long-Term Debt | 40% | 6% |
Preferred Stock | 10% | 11% |
Common Stock Equity | 50% | 15% |
Calculate the
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