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Calculate the weighted average cost of capital (WACC) for Riley's Rocket Pops given the following information: Capital Component Percentage of Total Capital Cost of Capital

Calculate the weighted average cost of capital (WACC) for Riley's Rocket Pops given the following information:

Capital Component Percentage of Total Capital Cost of Capital
Common Stock 40% 16%
Preferred Stock 20% 10%
Long-Term Debt 40% 5%, after-tax (tax rate = 25%)

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