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An analyst has collected the following information about Green Corp.: The companys cost of common stock, RE, is 14.00% The companys before-tax cost of debt,
An analyst has collected the following information about Green Corp.:
The companys cost of common stock, RE, is 14.00% The companys before-tax cost of debt, RD, is 8.00%. The companys cost of preferred stock, RP, is 7.50% The companys effective tax rate is 40% The companys current capital structure based on market values is 60% common equity, 10% preferred equity, and 30% debt.
A. Given these data, what is the firms weighted average cost of capital (WACC)?
B. The after-tax cost of debt for Green Corp. is _______%.
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