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Shaw Ltd plans to maintain its optimal capital structure of 40% debt, 10% preference shares and 50% ordinary shares into the future. The cost of

Shaw Ltd plans to maintain its optimal capital structure of 40% debt, 10% preference shares and 50% ordinary shares into the future. The cost of each component is: after -tax debt, 5%; preference shares, 10%; ordinary shares, 15%. Calculate the WACC for Shaw Ltd.

Question 26 options:

11.0%

10.0%

10.5%

11.5%

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