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Given the following information, calculate the weighted average cost for the Ban Corp. Percent of capital structure: Preferred stock10% Common equity70% Debt20% Additional information: Corporate
Given the following information, calculate the weighted average cost for the Ban Corp.
Percent of capital structure:
Preferred stock10%
Common equity70%
Debt20%
Additional information:
Corporate tax rate34%
Dividend, preferred$8.00
Dividend, expected common$4.00
Price, preferred$80.00
Growth rate5%
Bond yield7%
Price, common$80.00
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