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Suppose a company has $45 in market value of equity, $4 in market value of preferred stock, $71 in outstanding bank term loans, and $44
Suppose a company has $45 in market value of equity, $4 in market value of preferred stock, $71 in outstanding bank term loans, and $44 of outstanding long term debt. if the cost of capital for those components before tax is 11.35%, 5.21%, 5.49%, and 6.77% respectively, and the tax rate is 30.33% what is the company's WACC? |
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