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correct. Maximum 4 marks] A company has target a capital structure with 35% debt, 15% preferred, and 50% common cquity. The interest rate on new

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correct. Maximum 4 marks] A company has target a capital structure with 35% debt, 15% preferred, and 50% common cquity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 12,25%, and the tax rate is 40%. The firm will not be issuing any new stock. What is the company's WACC

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