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ABC Company has $100,000 in debt, $50,000 in preferred stock and $50,000 in common stock. The interest rate on the debt is 7%, the dividend
ABC Company has $100,000 in debt, $50,000 in preferred stock and $50,000 in common stock. The interest rate on the debt is 7%, the dividend per share for the preferred stock $2 and the price of the preferred stock is $20 per share. The cost of the common stock is 14%. The tax rate is 40%. Please calculate the weighted average cost of capital for ABC Company
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