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A firm has 12,000 shares of common stock outstanding with a market value of $39 per share. There are 5,000 shares of preferred stock with
A firm has 12,000 shares of common stock outstanding with a market value of $39 per share. There are 5,000 shares of preferred stock with a market value of $26. There is a $400,000 face value bond issue outstanding that is selling at 87% of par. What weight should be placed on the preferred stock when computing the firm's WACC? 7.25% 13.74% 15.09% 11.48%
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