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6.) Assume a for-profit company has $8 million of long-term debt with an interest rate of 6%. It has $3 million of preferred stock with

6.) Assume a for-profit company has $8 million of long-term debt with an interest rate
of 6%. It has $3 million of preferred stock with a requires dividend rate of 8%. And it
has $4 million of common stock that is estimated to have a cost of capital of 10%. What
is its weighted average cost of capital?

Please enter amounts below.

a. Long term debt amount =
b. Long term debt interest rate =
c. Preferred stock value =
d. Preferred stock required dividend =
e. Common stock value =
f. Common stock cost of capital =

Please enter amounts, to get the totals and final answer.

Answer:
Long term debt $0 X 0% = $0
Preferred stock $0 X 0% = $0
Common Stock $0 X 0% = $0
Total Capital $0 Total Cost $0
Total Cost $0 = ANSWER
Total Capital /$0

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