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Given the following information on Big Bros INC capital structure, compute the company's weighted average cost of capital (WACC). The company's marginal tax rate os

Given the following information on Big Bros INC capital structure, compute the company's weighted average cost of capital (WACC). The company's marginal tax rate os 40%.

Type of capital % of Capital Structure Before tax component cost

bonds 54% 14.79%

Preferred stock 12% 16.66%

Common Stock Calculate it 14.50%

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