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A company issues 10 million shares of common equity and each share is $20. The company issues one million preferred shares they have a price
A company issues 10 million shares of common equity and each share is $20. The company issues one million preferred shares they have a price of $10 per share. The company also has 90,000 non-callable bonds that have a market value of $1100. If the cost of equity is 12%, cost of debt before tax is 7% and cost of preferred stock is 8%. Tax rate = 34%. What is the WACC?
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