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Lancaster Engineering Inc. (LEI) capital structures consist of debt (30%), preferred stock (20%) and the common stock. LEIs tax rate is 40%. Debt could be
Lancaster Engineering Inc. (LEI) capital structures consist of debt (30%), preferred stock (20%) and the common stock. LEI’s tax rate is 40%. Debt could be sold at an interest rate of 9%. Cost of preferred stock is 9.5% and the cost of common stock is 13%. Calculate the firm’s WACC.
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
