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Given the following information, what is the WACC for the fim, WACCcomp? Corporate tax rate: 40% Market value: Short-term debt: $200 Long-term debt:400 Preferred stock:
Given the following information, what is the WACC for the fim, WACCcomp? Corporate tax rate: 40% Market value: Short-term debt: $200 Long-term debt:400 Preferred stock: 100 Common Stock: 300 Cost of capital: Cost of short-term debt: .04 Cost of long-term debt: .10 Cost of preferred stock: .08 Cost of common stock: .20 Select one: O a. 10.51% O b. 9.68% O c. 12.33% O d. 11.52%
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