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A company has the following capital structure: $5 million from bonds, $25 million from preferred stock, and $100 million from common stock. The cost of
A company has the following capital structure: $5 million from bonds, $25 million from preferred stock, and $100 million from common stock. The cost of each source of funding is as follows: Bonds = 8.00%; Common = 11.75%; Preferred = 7.50%.
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