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Problem 11-17 WACC (LG11-2) Suppose that B2B, Inc. has a capital structure of 37 percent equity, 17 percent preferred stock, and 46 percent debt. Assume
Problem 11-17 WACC (LG11-2) Suppose that B2B, Inc. has a capital structure of 37 percent equity, 17 percent preferred stock, and 46 percent debt. Assume the before-tax component costs of equity, preferred stock, and debt are 15.5 percent, 13.0 percent, and 10.5 percent, respectively What is B2B's WACC if the firm faces an average tax rate of 30 percent? (Round your answer to 2 decimal places.) WACC Reference links 111 The WACC Formula
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