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7. A company has a before-tax cost of common equity of 14%, pre-tax cost of debt of 6%, a cost of preferred equity of 8%,
7. A company has a before-tax cost of common equity of 14%, pre-tax cost of debt of 6%, a cost of preferred equity of 8%, and a marginal tax rate of 34%. The current market value of the company is $150 million, with $75 million common equity, $50 million debt, and $25 million preferred equity
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