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College Park Computers (CPC) has a tax rate of 20%. Their cost of preferred stock is 20% and their cost of equity is 10%. CPC
- College Park Computers (CPC) has a tax rate of 20%. Their cost of preferred stock is 20% and their cost of equity is 10%. CPC has a capital structure of 37% common stock, 45% debt, and 18% preferred stock. They have issued a 5-year bond to maturity that will pay a 9% annual coupon at a price of $955 and a face value of $1000. What is CPCs WACC?
- 11.97%
- 14.5%
- 13.5%
- 10.97%
- 36.1%
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