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PFD Company has debt with a yield to maturity of 8%, a cost of preferred stock of 10%, and a cost of equity of 14%.

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PFD Company has debt with a yield to maturity of 8%, a cost of preferred stock of 10%, and a cost of equity of 14%. The market values of its debt, preferred stock, and equity are $10 million, $2 million, and $16 million, respectively, and its tax rate is 40%. What is this firm's weighted-average ost of capital? 9.86 9.31 10.43 10.67 11.57

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