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Intro You have collected the following information about a company Market value Before-tax cost Source of capital Long-term debt $180,000 8% Preferred stock $50,000 11%

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Intro You have collected the following information about a company Market value Before-tax cost Source of capital Long-term debt $180,000 8% Preferred stock $50,000 11% 17% for retained earnings Common equity $570,000 20% for new common stock Total $800,000 The company's total (federal plus state) marginal tax rate is 41%. Part 1 IB Attempt 1/3 for 10 pts What is the weighted average cost of capital, if all common equity comes from retained earnings? 3+ decimals Submit IB Attempt 1/3 for 10 pts. Part 2 What is the weighted average cost of capital, if all common equity comes from newly issued stock? 3+ decimals Submit About Blog Contact Instructor Guide Priva search O fi

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