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A firm has $30 million of common stock, $20 million of preferred stock, and $40 million of debt. The cost of equity is 8.5%, the
- A firm has $30 million of common stock, $20 million of preferred stock, and $40 million of debt. The cost of equity is 8.5%, the cost of preferred stock is 9.5%, and the pretax cost of debt is 7%. If the firm's tax rate is 30%, what is the firm's WACC?
- A.8.33%
- B.6.44%
- C.7.12%
- D.7.75%
- E.8.06%
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
