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pls help will thumbs up if correct Kuler Burgers' capital structure consists of 10 percent debt, 40 percent preferred stock, and 50 percent cammen stodk.
pls help will thumbs up if correct
Kuler Burgers' capital structure consists of 10 percent debt, 40 percent preferred stock, and 50 percent cammen stodk. If Killer raises new capital, ins afteritax cost of debt will be 3.5 nercent, its cost of preferred stock will be 7 percent, its cost of retained earnings will be 11.3 percent, and its cost of newi common equity wit be 13.3 perrent. Kulat must raile \$270,000. If manogement expects the firm to generate $130,000 in retained eamings this year, what is Kolier's marginal cost of capitai to raise the needed funts? Round Your. answer to two decimat ploces Step by Step Solution
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