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Question 20 i4 noint? Gurnat Whatrics cepects that its target capiqi structure for raising funds in the furure ive its canibar budget will consist of
Question 20 i4 noint? Gurnat Whatrics cepects that its target capiqi structure for raising funds in the furure ive its canibar budget will consist of 40 s debt, 5% preferred stock, and 55% conmon equitr. Note that the firmi) marginal tax rate is 21\%. Assume that the firm's coet of drit / is ios, the firmy cost of preferred stock, rp; is 9% and the firm's cost Wucc. at it uses retaincd earnings (old equity) as its source of common equity
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