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Suppose a firm has of $150 million of common stock, has $25 million of preferred stock, and $75 million of debt. Cost of debt, rd
Suppose a firm has of $150 million of common stock, has $25 million of preferred stock, and $75 million of debt.
Cost of debt, rd = 10% (before tax) Cost of preferred stock, rp = 9% Cost of common stock, rs= 13%
what is the firms weighted average cost of capital (WACC), if the tax rate equals34%?
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