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Baxter Inc. has a target capital structure of 30% debt, 15% preferred stock, and 55% common equity. The company's after-tax cost of debt is 7%,

Baxter Inc. has a target capital structure of 30% debt, 15% preferred stock, and 55% common equity. The company's after-tax cost of debt is 7%, its cost of preferred stock is 11%, and its cost of new common stock is 16%. What is the company's weighted average cost of capital?

Group of answer choices

10.5%

11.66%

12.55%

13.8%

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