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A firm is considering a project that requires an initial investment of capital by issuing $ 5 3 8 of debt at a before -

A firm is considering a project that requires an initial investment of capital by issuing $538 of debt at a before-tax cost of 9.6%,$696 of preferred stock at a cost of 10.7% and $394 of equity at a cost of 13.5%. The firm faces a tax rate of 40%. What will be the firm's weight on debt?
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