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Question 20 Weight of Capital & WACC Your company is capitalized as follows: Bonds of $12B at a 3% annual effective interest rate (ra); Preferred

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Question 20 Weight of Capital & WACC Your company is capitalized as follows: Bonds of $12B at a 3% annual effective interest rate (ra); Preferred Stock of $6B at a 4% annual dividend rate (rp); . Common Stock with a market cap of $102B. You estimate your shareholder's cost of equity (rs)'is 6%. Your effective tax rate is 24%. What is your after-tax WACC? 5.46% 7.24% 6.79% 6.38% 5.53%

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