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Please explain your answer is 5%, it has $2 billion in equity, and its pomowe ( cost of equity capital is 7%. Compute the company's

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is 5%, it has $2 billion in equity, and its pomowe ( cost of equity capital is 7%. Compute the company's WACC. L04 M12-22. Estimating Weighted Average Cost of Capital Assume that a company has $1 billion in preferred stock and $3 billion in common stock. Also, it paya 6 6% dividends on preferred stock and its cost of equity capital is 7%. The company has no debt. Compute the company's WACC

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