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Question #1, Test 2; Thank you so much! Avery Corporation's target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate

Question #1, Test 2; Thank you so much!
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Avery Corporation's target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from reinvested earnings is 11.25%, and the tax rate is 25%. The firm will not be issuing any new common stock. What is Avery's WACC? a) 9.19% b) 8.49% C) 8.83% d) 9.94% e) 9.55%

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