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(b) The capital structure and cost of capital of a company are given below: Sources of Funds Amount Cost Common Stock 50,00,000 15% Preferred Stock
(b) The capital structure and cost of capital of a company are given below: Sources of Funds Amount Cost Common Stock 50,00,000 15% Preferred Stock 15,00,000 16% Bond 25,00,000 10% Retained Earnings 10,00,000 14% Total 1,00,00,000 If the corporate tax rate is 45% and personal tax rate is 25%, what is the weighted average cost of capital (WACC) of the company
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