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Allen Corporation has the following equity structure: Market Value After Tax Cost Long-term debt $700,000 15% Preferred stock 50,000 5 Common stock 250,000 15 The

Allen Corporation has the following equity structure:

Market Value After Tax Cost
Long-term debt $700,000 15%
Preferred stock 50,000 5
Common stock 250,000 15

The weighted average cost of capital is

14.5%

8.2%

8.7%

10.3%

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