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A company is financed with 60% of common stock and 30% of debt, and 10% of preferred stock. Its lenders charged 8% on the debt,
A company is financed with 60% of common stock and 30% of debt, and 10% of preferred stock. Its lenders charged 8% on the debt, the cost of equity is 15%, and the cost of preferred stock is 10%. The company is in the 25% tax bracket. Calculate WACC. 10.20% 11.80% 12.10% 18.11%
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