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Assume Dominion Energy is discussing new ways to recapitalize the firm and raise additional capital. The market values of its capital sources are $63.1 billion
Assume Dominion Energy is discussing new ways to recapitalize the firm and raise additional capital. The market values of its capital sources are $63.1 billion in equity, $39.7 billion in debt and $2.4 billion in preferred stock . The cost of equity capital is 4.3%, the cost of preferred stock is 3.7%, and the pretax cost of debt is 3.1%. What is the weighted average cost of capital for Dominion Energy if its marginal tax rate is 25%?
Group of answer choices
4.15%
3.46%
3.77%
3.54%
3.83%
3.96%
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