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Suppose Dexter, Inc.s target capital structure is as follows: wd = 0.45, wps = 0.10, and wce = 0.45 Its before-tax cost of debt is
Suppose Dexter, Inc.s target capital structure is as follows: wd = 0.45, wps = 0.10, and wce = 0.45 Its before-tax cost of debt is 7.5%, its cost of equity is 11.5%, its cost of preferred stock is 9.0%, and its marginal tax rate is 40%. Calculate Dexters WACC.
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