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Firm R has the target capital structure and component costs of capital shown in the table below Cost Weight Debt 5% 34% Preferred Stock 8%
Firm R has the target capital structure and component costs of capital shown in the table below Cost Weight Debt 5% 34% Preferred Stock 8% 11% Common Stock 9.8% 55% If firm R's marginal tax rate is 34%, estimate the WACC.
9.24%
9.39%
6.65%
7.39%
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