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Suppose a firm's bonds have a yield of 4.62%, the required return on preferred stock is 7%, and its required return to common stock is
Suppose a firm's bonds have a yield of 4.62%, the required return on preferred stock is 7%, and its required return to common stock is 11.75%. If these sources of capital are weighted 0.33, 0.35, and 0.32 respectively, and the firm's tax rate is 28.46%, what is the firm's weighted-average cost of capital?
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