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Bermuda Shores, Inc. is financed with 15% debt, 5% preferred shares, and 80% common stock. If the cost of new borrowing will be 5%, the

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Bermuda Shores, Inc. is financed with 15% debt, 5% preferred shares, and 80% common stock. If the cost of new borrowing will be 5%, the cost of preferred shares is 12%, and the cost of equity is 15%; what is Bermuda Shores, Inc.'s cost of capital? The applicable tax rate is 20%. 12.2% 13.2% 10.5%

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