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Problem 1 4 - 9 Calculating WACC [ LO 3 ] Ninecent Corporation has a target capital structure of 7 0 percent common stock, 5
Problem Calculating WACC LO
Ninecent Corporation has a target capital structure of percent common stock, percent preferred stock, and percent debt. Its cost of equity is percent, the cost of preferred stock is percent, and the pretax cost of debt is percent. The relevant tax rate is percent.
a What is the company's WACC? Do not round intermediate calculations and enter your answer as a percent rounded to decimal plafces, eg
b What is the aftertax cost of debt? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
Answer is complete but not entirely correct.
tablea WACC,
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