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Intro You have collected the following information about a company: Source of capital Market value Book value After-tax cost Long-term debt 100,000 100,000 0.08
Intro You have collected the following information about a company: Source of capital Market value Book value After-tax cost Long-term debt 100,000 100,000 0.08 Preferred stock 60,000 72,000 0.11 Common stock Total 150,000 75,000 0.16 310,000 247,000 Part 1 What is the weighted average cost of capital using market values? 3+ decimals Submit Part 2 What is the weighted average cost of capital using book values? 3+ decimals Submit Attempt 1/3 for 6 pts. Attempt 1/3 for 6 pts. HW9 - Cost of Capital
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