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QUESTION 5 Calculating Capital Structure Weights A firm has the following target capital structure with $14,230 of debt, $4,363 of preferred stock and $10,003 of
QUESTION 5 Calculating Capital Structure Weights A firm has the following target capital structure with $14,230 of debt, $4,363 of preferred stock and $10,003 of equity. The after-tax cost of debt is 6.27%, the cost of preferred stock is 10.29% and the cost of common equity is 13.94%. The firm faces a tax rate of 40%. What will be the firm's weight on equity capital? (your answer should be in percentages so 10% would be entered as 10 or 10%) hint: you need to first find the total amound of invested capital
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