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Rank Corporation uses debt, preferred stock, and common stock to raise capital. The firms capital structure targets the following proportion: debt, 55%; preferred stock, 10%;
Rank Corporation uses debt, preferred stock, and common stock to raise capital. The firms capital structure targets the following proportion: debt, 55%; preferred stock, 10%; and common stock, 35%. If the after-tax cost of debt is 8.38%, preferred stock costs 11.50%, and common stock costs 13.25%, what is Rosss weighted average cost of capital (WACC)?
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