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Pike Delivery Company ( PDC ) has 3 5 % debt, 5 5 % common equity and 1 0 % preferred stock. The after -

Pike Delivery Company

(

PDC

)

has

35 %

debt,

55 %

common equity and

10 %

preferred stock. The after

-

tax cost of debt is

6 % .

The required return on common equity is

14 % .

The cost of preferred stock is

11 % .

What is their Weighted Average Cost of Capital?

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