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A corporation has a target capital structure of 70% common stock, 5% preferred stock, and 25% debt. Company's cost of equity is 11%, the cost
A corporation has a target capital structure of 70% common stock, 5% preferred | ||||
stock, and 25% debt. Company's cost of equity is 11%, the cost of preferred stock is 5%, | ||||
and cost of debt is 6%. The tax rate is 23%. What is the companyis weighted | ||||
average cost of capital? |
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