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Question 20 Not yet answered Marked out of 1.50 P Flag question Alhamra Technology's capital structure is as follows (in %). Debt 30; Preferred stock
Question 20 Not yet answered Marked out of 1.50 P Flag question Alhamra Technology's capital structure is as follows (in %). Debt 30; Preferred stock 20; Common equity 50; The before tax cost of debt is 8 percent and tax rate is 50%; the cost of preferred stock is 10 percent and the cost of common equity (in the form of retained earnings) is 12 percent. Calculate Alhamra Technology's weighted average cost of capital (after tax]? ANSWER FORMAT: 0.123 (do not convert in %]
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