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Reliant Energy wants to maintain a WACC of 23.62%. Its capital structure consists of 20% common stock, 50% preferred stock and 30% od debt. The
Reliant Energy wants to maintain a WACC of 23.62%. Its capital structure consists of 20% common stock, 50% preferred stock and 30% od debt. The cost of common stock is 12% and cost of debt is 4%. the tax rate is 40%. what should be the cost of preferred stock to maintain the wacc at 23.62%?
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