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Monster Cables has a cost of debt of 9%, a cost of equity of 14%, and a cost of preferred stock of 10%. The firm
Monster Cables has a cost of debt of 9%, a cost of equity of 14%, and a cost of preferred stock of 10%. The firm has 87,000 shares of common stock outstanding at a market price of $27 a share. There are 30,000 shares of preferred stock outstanding at a market price of $41 a share. The bond issue has a total face value of $750,000 and sells at 99% of face value. The company stax 35 \%. What is the weighted average cost of capital for Monster Cables? 11.38% (B) 11.93% (C) 11.46% (D) 11.89%
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