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ABC Inc. has a capital structure of 40% debt, 30% preferred stock, and the rest is common stock. The before-tax cost of debt is 7%,
ABC Inc. has a capital structure of 40% debt, 30% preferred stock, and the rest is common stock. The before-tax cost of debt is 7%, the cost of preferred stock and common stocks are 13% and 10% respectively. If, the tax rate of ABC Inc. is 20%, compute ABC Inc.s WACC.
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