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Given the following information on S & G Inc.'s capital structure, compute the company's weighted average cost of capital. Type of Percent of Before-Tax Capital

Given the following information on S & G Inc.'s capital structure, compute the company's weighted average cost of capital. Type of Percent of Before-Tax Capital Capital Structure Component Cost Bonds 40% 7.5% Preferred Stock 5% 11% Common Stock (Internal Only) 55% 15% The company's marginal tax rate is 40%

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