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For le monde corporation, the costs of various types of capital are as follows: CostWeight: Equity 12% 40% Preferred stock 10% 20% Debt 9% 40%

For le monde corporation, the costs of various types of capital are as follows:

CostWeight:

Equity 12% 40%

Preferred stock 10% 20%

Debt 9% 40%

Given the corporation tax rate of 30% the before tax weighted average cos of capital for Le Monde is lower than its after tax WACC.

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