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A firm has the following target capital structure with $10,492 of debt, $6,428 of preferred stock and $14.571 of equity. The after-tax cost of debt
A firm has the following target capital structure with $10,492 of debt, $6,428 of preferred stock and $14.571 of equity. The after-tax cost of debt is 5.6%, the cost of preferred stock is 10.98% and the cost of common equity is 16.68%. The firm faces a tax rate of 40%. What will be the firm's weight on equity capital? (your answer should be in percentages so 10% would be entered as 10 or 10%) hint you need to first find the total amound of invested capital
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