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BlossomCo. has a capital structure, based on current market values, that consists of30percent debt,3percent preferred stock, and67percent common stock. If the returns required by investors
BlossomCo. has a capital structure, based on current market values, that consists of30percent debt,3percent preferred stock, and67percent common stock. If the returns required by investors are10percent,13percent, and15percent for the debt, preferred stock, and common stock, respectively, what isBlossom's after-tax WACC? Assume that the firm's marginal tax rate is 40 percent.
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