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Determine the Weighted Average Cost of Capital (WACC) of the following capital structure. Assume that the corporate tax rate is 32%. Provide your answer to
Determine the Weighted Average Cost of Capital (WACC) of the following capital structure. Assume that the corporate tax rate is 32%. Provide your answer to 4 decimal places.
Security, Market Value, Required Rate of Return
Debt, $24 million, 4.5%
Preferred stock, 36 million, 9%
Common stock, 120 million, 18%
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