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Brasil Growth Company has a target capital structure of 30% debt, 5% preferred stock, and 65% common stock. the company's tax rate is 40%. the
Brasil Growth Company has a target capital structure of 30% debt, 5% preferred stock, and 65% common stock. the company's tax rate is 40%. the before-tax cost of debt os 6%, cost of preferred stock is 5.8%, and cost of common equity is 12%. what is its WACC?
a. 10.20%
b. 12.00%
c. 8.97%
d. 9.17%
please, show me your solution.
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