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Smart Finance Corporation wishes to explore the effect on its cost of capital of the rate at which the company pays taxes. The company wishes

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Smart Finance Corporation wishes to explore the effect on its cost of capital of the rate at which the company pays taxes. The company wishes to maintain a capital structure of 25% debt, 20% preferred stock, and 55% common stock. The cost of financing with equity is 13%, the cost of preferred stock financing is 6%, and the cost of debt financing is 7%. Calculate the weighted average cost of capital (WACC) *

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