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Calculate the Weighted Average Cost of Capital given the following information: Target capital structure: 60 percent stock, 30 percent debt, 10 percent preferred stock ;
Calculate the Weighted Average Cost of Capital given the following information:
Target capital structure: 60 percent stock, 30 percent debt, 10 percent preferred stock ; cost of equity is 12 percent; cost of debt is 7 percent; cost of preferred stock is 5 percent and tax rate is 35 percent.
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