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AutoCorp has a capital structure of 40 percent common stock, 10 percent preferred stock, and the 50 percent in debt. Its cost of equity is
AutoCorp has a capital structure of 40 percent common stock, 10 percent preferred stock, and the 50 percent in debt. Its cost of equity is 16.0 percent, the cost of preferred stock is 10.0 percent, and the BEFORE TAX cost of debt is 8.85. percent. What is the WACC given a tax rate of 23 percent? A B D E 11.62% 12.43% 11.83% 10.81% 8.85%
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