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Merck's capital structure consists of 30% common stock, 30% preferred stock and 40% of debt. The cost of common stock is 15% and cost of

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Merck's capital structure consists of 30% common stock, 30% preferred stock and 40% of debt. The cost of common stock is 15% and cost of debt is 13%. The tax rate is 35% What should be the cost of preferred stock to maintain the WACC at 13.88% for Merck? 18% 20% 21% 19% 22%

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