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Posted on May 19, 2024

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

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

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Type of Capital Percent of Capital Structure Before-Tax Component Cost

Bonds 44% 14.39%

Preferred Stock 12% 17.22%

Common Stock Please calculate it 13.42%

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