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A company s capital structure is 30 percent debt, 10 percent preferred stock, and 60 percent common equity. Its after-tax cost of debt is 4%,
A company s capital structure is 30 percent debt, 10 percent preferred stock, and
60 percent common equity. Its after-tax cost of debt is 4%, the current yield on its
preferred stock is 10%, and the required return on equity is 15%. What is its
weighted cost of capital for the coming year? show work
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