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Edisto Bank has an optimal capital structure that is 70% common equity, 20% debt, and 10% preferred stock. The pretax cost of equity is 7%,

Edisto Bank has an optimal capital structure that is 70% common equity, 20% debt, and 10% preferred stock. The pretax cost of equity is 7%, the pretax cost of preferred equity is 11%, and the pretax cost of debt is 9%. If the corporate tax rate is 30%, what is the average cost of capital

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