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How would I solve the problem abalance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity.
How would I solve the problem abalance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. The tax rate is 35%, rd= 6%, rps= 6.3%, and rs= 14%. If it has a target capital structure of 30% debt, 5% preferred stock, and 65% common stock, what is its weighted average cost of capital or WACC?
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