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PFD company has a debt with a yield of maturity of 7%, a cost of equity of 13%, and a cost of preferred stock of
PFD company has a debt with a yield of maturity of 7%, a cost of equity of 13%, and a cost of preferred stock of 9%. The market values of its debt, preferred stock, in equity are $10,000,000, $3,000,000, and $15,000,000, respectively, and its tax rate is 40%. What is this firms after tax WACC?
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