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Big Burger has 100,000 shares of common stock outstanding at a market price of $40 a share. There are 10,000 shares of 8 percent preferred
Big Burger has 100,000 shares of common stock outstanding at a market price of $40 a share. There are 10,000 shares of 8 percent preferred stock outstanding at a market price of $30 a share. The firm has 1000 bonds outstanding with a face value of $1,000 and a market price of $960. The firms tax rate is 34 percent. What weight should be assigned to the cost of common stock when computing the weighted average cost of capital?
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