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Cutler Corporation has a target capital structure of 55 % common stock, 5 % preferred stock, and 40 % debt. Its cost of equity is

Cutler Corporation has a target capital structure of 55 % common stock, 5 % preferred stock, and 40 % debt. Its cost of equity is 16 %, the cost of preferred stock is 10 %, and the cost of debt is 9 %. The relevant tax rate is 35 %. What is Cutler s WACC?

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