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PLEASE HELP !!! Company Bourbon's book value of capital is as follows: Debt $12,500,000; Pref Stock $12,000,000; Common Stock $25,200,000. The market value of Company
PLEASE HELP !!!
Company Bourbon's book value of capital is as follows: Debt $12,500,000; Pref Stock $12,000,000; Common Stock $25,200,000. The market value of Company Bourbon's capital is: Debt $12,500,000; Pref Stock $22,500,000; Common Stock $55,000,000. Company Bourbon's after-tax cost of debt is 5.7%, preferred stock has required return of 7.5% and common stock has a required return of 12.0%. What is Bourbon's weighted average cost of capital? 10.0% 8.4% 11.0% It can not be determined without knowing the tax rate
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