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A company has the following capital structure: Account $ Costs before tax Long-term Debt 1,500,000 10% Preferred Stock 500,000 12% Common Stock 3,000,000 20% Calculate

A company has the following capital structure:

Account

$

Costs before tax

Long-term Debt

1,500,000

10%

Preferred Stock

500,000

12%

Common Stock

3,000,000

20%

Calculate the weighted average cost of capital (tax is 40%)

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