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(CHAPTER 14) Sushi Truck has the following capital structure to run its sushi business. SUSHI It uses equity, preferred stock, and debt in the following
(CHAPTER 14) Sushi Truck has the following capital structure to run its sushi business. SUSHI It uses equity, preferred stock, and debt in the following proportions: 60% equity, and equal amounts in preferred stock and debt. The annual costs of equity, preferred stock, and debt equal 14%, 8%, and 5%, respectively. Sushi Truck falls into 28% corporate income tax bracket. Calculate Sushi Truck's average annual cost of running its sushi business, also known as the Weighted Average Cost of Capital. Your answer should be in %, not in decimals: e.g., 10.23 rather than 0.1023. Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher, and only round your final answer to TWO decimal places: for example, 10.23. Do NOT use "%" in your
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