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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 stocks 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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