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Calculating the weighted average cost of capital. Suppose that Tale Inc. has the following target capital structure: 50 percent stock, 40 percent debt, and 10
Calculating the weighted average cost of capital.
Suppose that Tale Inc. has the following target capital structure: 50 percent stock, 40 percent debt, and 10 percent preferred stock. Its cost of equity is estimated at 10 percent, that of debt 6 percent, and that of preferred stock 4.5 percent. The tax rate is 35 percent. What is Tale
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