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Smith Corporation's capital structure is 30% debt, 10% preferred, and 60% common equity. The interest rate on new debt is 7.50%, the yield on the
Smith Corporation's capital structure is 30% debt, 10% preferred, and 60% common equity. The interest rate on new debt is 7.50%, the yield on the preferred is 5.00%, the cost of common from reinvested earnings is 10.25%, and the tax rate is 21%. The firm will not be issuing any new common stock. What is Smith's WACC? O 7.15% 8.82% 8.43% 9.48% 09.17%
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