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JC Enterprise has bank loans, bonds, preferred shares, and common shares with equal book weight as its capital structure. If before-tax cost of bank loans,
JC Enterprise has bank loans, bonds, preferred shares, and common shares with equal book weight as its capital structure. If before-tax cost of bank loans, before-tax cost of bonds, cost of preferred shares and cost of common shares are 4.5%, 7.5%, 11%, and 15%, respectively. What is the weighted average cost of capital? Assume a tax rate is 30%.
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