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Lewis runs an outdoor adventure company and wants to know what effect a tax change will have on his companys WACC. Currently Lewis has the
Lewis runs an outdoor adventure company and wants to know what effect a tax change will have on his companys WACC. Currently Lewis has the following financing pattern:
Capital | Weight | Cost |
Common Stock | 35% | 14% |
Preferred Stock | 15% | 11% |
Debt | 50% | 10% |
What is the WACC if Lewis tax rate is 40%.
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