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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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