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Given the following information, calculate the weighted average cost for the Ban Corp. Percent of capital structure: Preferred stock 10% Common equity 70% Debt 20%

Given the following information, calculate the weighted average cost for the Ban Corp. Percent of capital structure: Preferred stock 10% Common equity 70% Debt 20% Additional information: Corporate tax rate 34% Dividend, preferred $8.00 Dividend, expected common $4.00 Price, preferred $80.00 Growth rate 5% Bond yield 7% Price, common $80.00 (Points : 40)

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