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Question 20 (4 points) Suppose Hellca Co. has the following information, what is its pre-tax cost of debt if it has a WACC of 12.9%?

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Question 20 (4 points) Suppose Hellca Co. has the following information, what is its pre-tax cost of debt if it has a WACC of 12.9%? It has a 40% corporate tax rate and is funded as follows. $35,000,000 equity with a return of 17% $21,000,000 debt $14,000,000 preferred with a 13% cost of preferred a) 12% b) 10% c) 6% d) 8%

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