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Let the required rate of returns for bond =6%; preferred stock =8%; and common stock =10%. The firm plans to raise the funds with 60%
Let the required rate of returns for bond =6%; preferred stock =8%; and common stock =10%. The firm plans to raise the funds with 60% from the bond, 10% from the preferred stock, and 30% from the common stock. Assume that the marginal tax rate =20%. Estimate the WACC.
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