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a firm has determined its cost of each source source of capital and optimal capital structure,which is composed of the following sources and target market
a firm has determined its cost of each source source of capital and optimal capital structure,which is composed of the following sources and target market value proportions :
Long term debt - target market proportions :40% ,after tax cost:4%
perferred stock -target market proportions :10,after tax cost:9
Common stock equity -targt market proportions:50,after tax cost :13
What is the weighted average cost of capital ?
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