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Bob Ltd is subject to 30% income tax rate. Below is information about the capital structure of Bob Ltd Source of funds Market value Required
Bob Ltd is subject to 30% income tax rate. Below is information about the capital structure of Bob Ltd Source of funds Market value Required rate of return Long-term debt 10,000 6% Preferred stock 50,000 8% Common stock 40,000 10% Required Calculate Bob Ltd weighted-average cost of capital (WACC) Place your answer in the table provided here below Sources of funds Market value Required rate Weights of market value of return Weighted- average cost of capital
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