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A firm funds its operations with $ 5 0 of common stock, $ 3 0 of preferred stock, and $ 4 0 of debt. The

A firm funds its operations with $50 of common stock, $30 of preferred stock, and $40 of debt. The component costs are: common =12 percent; preferred =10 percent; pretax debt =8 percent. Illustrate the WACC formula at a tax rate of 34 percent.

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