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A Hard Days Night (HDN) has a capital structure that is based on 46 percent debt, 9 percent preferred stock, and 45 percent common stock.
A Hard Days Night (HDN) has a capital structure that is based on 46 percent debt, 9 percent preferred stock, and 45 percent common stock. The cost of debt is 5.5 percent, the cost of preferred is 8.4 percent, and the cost of common stock is 12.8 percent. The tax rate is 21 percent. What is the WACC for HDN? Multiple Choice
12.8%
8.515%
8.911%
7.759%
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