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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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