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Given the following information a capital structure, compute the company's weighted average cost of capital (WACC). The company's marginal tax rate is 40%. Type of
Given the following information a capital structure, compute the company's weighted average cost of capital (WACC). The company's marginal tax rate is 40%.
| Type of Capital | % of Capital Structure | Before Tax Component Cost | |
| Bonds | 33.40% | 13.49% | |
| Preferred Stock | 10.42% | 14.71% |
Common Stock 56.18% 14%
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Principles Of Finance With Excel
Authors: Simon Benninga
2nd Edition
0199755477, 9780199755479
