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Barron Corporation has a target capital structure of 60 percent common stock , 5 percent preferred stock and 35 percent debt . its cost of
Barron Corporation has a target capital structure of 60 percent common stock , 5 percent preferred stock and 35 percent debt . its cost of equity is 12 percent the cost of preferred stock is 8 percent and the pretax cost of debt is 9 percent. The relevant tax rate is 24 percent.
a. What is the company's WACC? b. After tax cost of debt?
a.WACC _____% b. After tax cost of debt _______%
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