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Question 5 Builtrite's target capital structure is 45% common stock, 25% preferred stock and 30% debt. If the cost of common is 14%, the cost
Question 5 Builtrite's target capital structure is 45% common stock, 25% preferred stock and 30% debt. If the cost of common is 14%, the cost of preferred stock is 10% and the before tax cost of debt is 9% (the tax rate is 34%), what is Builtrite's weighted average cost of capital? 10.58% 8.32% 11.50% 10.38% ?
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