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ABC Corporation has the following capital structure: Debt (Bond) $35 Million Preferred Stock $20 Million Common Stock (Retained Earnings) $45 Million Before Tax Cost of
ABC Corporation has the following capital structure: Debt (Bond) $35 Million Preferred Stock $20 Million Common Stock (Retained Earnings) $45 Million Before Tax Cost of Debt 12% Tax Rate 30% Cost of the Preferred 14% Cost of Retained Earnings 16% ABC's Weighted Average cost of Capital is: 12.94% 14.54% 9.56% 15.10%
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