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Everything is the same except: K D = 8.3%, K p = 9.2%, K e = 14.5%, debt book value of $200,000, preferred stock book
Everything is the same except: KD = 8.3%, Kp = 9.2%, Ke = 14.5%, debt book value of $200,000, preferred stock book value of $40,000, common equity book value of $60,000
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11-4 The component costs of the capital structure for Wilhelmi Corporation have been computed in Problems 11-1, 11-2, and 11-3: KD=7.4%,Kp=10.5%, and Ke =16.4%. According to its latest balance sheet, Wilhelmi Corporation has debt with a book value of $100,000, preferred stock with a book value of $50,000, and common equity with a book value of $50,000. What is the weighted average cost of capital for Wilhelmi Corporation using book value weightsStep by Step Solution
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