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Assuming a target capital structure of: 40% debt 20% preferred stock 40% common equity What would be the WACC given the following: All debt will
Assuming a target capital structure of:
40% debt
20% preferred stock
40% common equity
What would be the WACC given the following:
All debt will be from the sale of bonds with a coupon of 10% (assume no flotation costs,) preferred stock's associated cost will be 13%, and the common equity will be from retained earnings with an associated cost of 15%. The tax rate for this corporation is 30%
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