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please answer with steps Circle 912 has $425,000 in outstanding long-term debt. C-912 has a limited amount of preferred stock shares outstanding (30,000) valued at
please answer with steps
Circle 912 has $425,000 in outstanding long-term debt. C-912 has a limited amount of preferred stock shares outstanding (30,000) valued at $2.50 per share. Currently, Circle 912's common stock is valued at $7.50 per share. The firm has 200,000 shares outstanding and 250,000 shares authorized. The firm's tax rate is 21% and they recently reported total assets of $2.35 million. The firm's preferred stock shares have a required return of 11.73%, long-term debt has a required return of 7.80%, and their common stock has a required return of 15.15%. Determine the firm's weighted average cost of capital (WACC) Step by Step Solution
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