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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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