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Calculate the opportunity cost of capital for a firm with the following capital structure: 30% preferred stock, 50% common stock and 20% debt. The firms
Calculate the opportunity cost of capital for a firm with the following capital structure: 30% preferred stock, 50% common stock and 20% debt. The firms has a cost of debt of 6.99%, a cost of preferred stock equal to 10.63% and a 13.8% cost of common stock. The firm has a 37% tax rate. You answer should be entered as a %, for example 15.48% Sort the following from smallest % (#1) to largest % (#4) cost of new common equity issuance cost of preferred stock after-tax cost of debt cost of retained earnings
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