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Company A has a target capital structure of 65% common equity, 30% debt, and 5% preferred stock. The cost of equity is 15.5%. The firm
Company A has a target capital structure of 65% common equity, 30% debt, and 5% preferred stock. The cost of equity is 15.5%. The firm sells bonds at par value to yield an after-tax cost of 7.0%. The cost of preferred stock financing is estimated to be 11%. What is Company A's weighted average cost of capital?
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