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D Question 4 5 pts Assume that a firm's optimal capital structure consists of 30% debt at a before tax cost of debt (Ko) of

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D Question 4 5 pts Assume that a firm's optimal capital structure consists of 30% debt at a before tax cost of debt (Ko) of 8 percent, 10% preferred stock at a cost of preferred (Kp) of 11 percent, and 60% stock at a cost of stock (Ks) of 15 percent, and that the firm's tax rate is 40%, giving the firma WACC of_Now assume that investors supplied $10,000,000 of capital (the initial cost of the firm) and the firm is expected to give them a constant free cash flow of $2,000,000 every year thereafter. Based on this information calculate the market value added for this firm. $9,064,124.78 $7,331,022.53 $8,197.573.66 O $5,597.920.28 $6,464 471.40

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