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one question please answer quickly 40. Suppose the Widget Company has a capital structure composed of the following, in billions: Debt $20, Preferred Stock $30,
one question please answer quickly
40. Suppose the Widget Company has a capital structure composed of the following, in billions: Debt $20, Preferred Stock $30, Common equity $50. If the before-tax cost of debt is 10%, the cost of preferred stock is 12%, the required rate of return on equity is 40%, and the marginal tax rate is 35%, what is Widget's weighted average cost of capital? A 0.123 B 0.154 C 0.249 D 0.162 E 0.179 Step by Step Solution
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