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An analyst gathers the following information about a company: of Capital Book Market Component componentValue (in Value (in cost millions) millions) Debt $100 $80 8%

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An analyst gathers the following information about a company: of Capital Book Market Component componentValue (in Value (in cost millions) millions) Debt $100 $80 8% Preferred $20 $20 10% stock Common stock $100 $200 13% The company's marginal tax rate is 40 percent. Its weighted average cost of capital (WACC) is

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