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

Given the following information on Big Brothers, Inc. capital structure, compute the companys weighted average cost of capital (WACC). The companys marginal tax rate is 40%. Round the answer to two decimal places in percentage form.

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

Bonds 37% 10.25%

Preferred Stock 18% 15.15%

Common Stock Please calculate it 15.89%

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