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Suppose That company A has the following capital structure: 25% Equity 10% preferred stock 65%Debt Its marginal cost of equity is 12%, Its marginal cost

Suppose That company A has the following capital structure:

25% Equity

10% preferred stock

65%Debt

Its marginal cost of equity is 12%, Its marginal cost of preferred stock is 9%, and its before-tax cost of debt is 7%.

Calculate the WACC.

suppose the marginal tax rate is 35%

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