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Fountains R Us has a target capital structure of 35% debt, 10% preferred and the remainder in common equity. The before-tax cost of debt is
Fountains R Us has a target capital structure of 35% debt, 10% preferred and the remainder in common equity. The before-tax cost of debt is 5.5%, the cost of preferred stock is 6.75% and the cost of equity is 10.92%. If their tax rate is 30%, what is their WACC?
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