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Bama Inc has a pre - tax cost of debt of 7 . 9 percent, a cost of equity of 1 5 percent, and a
Bama Inc has a pretax cost of debt of percent, a cost of equity of percent, and a cost of preferred stock of percent. The firm has shares of common stock outstanding at a market price of $ a share. There are shares of preferred stock outstanding at a market price of $ a share. The bond issue has a face value of $ and a market quote of percent of face value. The company's tax rate is percent.
What is the firm's weighted average cost of capital?
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