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Clock Corporation has a current stock price of $22.00 per share with 2 million shares outstanding. Their cost of common equity is 12%. They have
Clock Corporation has a current stock price of $22.00 per share with 2 million shares outstanding. Their cost of common equity is 12%. They have $35,000,000 in long-term debt on the balance sheet, but no short-term debt. The after-tax cost of debt is 5%. The firm also has $2,000,000 of preferred stock with a required return of 9%. What is their WACC?
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