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Multimedia Corp has a target capital structure of 70 percent common stock, 10 percent preferred stock, and 20 percent debt. Its cost of equity is

Multimedia Corp has a target capital structure of 70 percent common stock, 10 percent preferred stock, and 20 percent debt. Its cost of equity is 11.5 percent, the cost of preferred stock is 6.5 percent, and the cost of debt (YTM) is 6.5 percent. The relevant tax rate is 35 percent.

Calculate the Weighted Average Cost of Capital for Multimedia?

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