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c) Ox Co., uses debt, common stock and preferred stock to raise capital. The firm's capital structure targets the following proportions, debt, 55%; preferred stock,
c) Ox Co., uses debt, common stock and preferred stock to raise capital. The firm's capital structure targets the following proportions, debt, 55%; preferred stock, 10%; and common stock, 35%. If the cost of debt is 6.7%, preferred stock costs 9.2%, and common stock costs 10.6%, what is Ox's weighted average cost of capital (WACC)? (10 Marks)
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