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Compute the cost of preferred stock for a firm that can issue new preferred stock at a price of $50 per share that will have
Compute the cost of preferred stock for a firm that can issue new preferred stock at a price of $50 per share that will have a $100 par value and a 4% dividend. O4% 50% 2% 8% Alpha Beta Corp. has a capital structure that is 40% debt, 15% preferred stock, and 45% common equity. The pre-tax cost of debt is 10%, the cost of preferred stock is 7.5%, and the cost of common equity is 12.8%. The firm's tax rate is 40%. The WACC is closest to
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