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ABC, Inc.'s target capital structure is 20% debt, 35% preferred, and 45% common equity. The before-tax cost of debt (R D ) is 2.46%, the
ABC, Inc.'s target capital structure is 20% debt, 35% preferred, and 45% common equity. The before-tax cost of debt (RD) is 2.46%, the cost of preferred stock (RP) is 11.87%, and the cost of common stock (RE) is 27.57%. If the tax rate is 18%. What is the WACC?
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