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Suppose that B2B, Inc., has a capital structure of 37 percent equity, 18 percent preferred stock, and 45 percent debt. Assume the before-tax component costs

Suppose that B2B, Inc., has a capital structure of 37 percent equity, 18 percent preferred stock, and 45 percent debt. Assume the before-tax component costs of equity, preferred stock, and debt are 15.5 percent, 13.0 percent, and 10.5 percent, respectively.

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