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Televax Inc has a cost of debt of 5 percent, a cost of equity of 7 percent, and a cost of preferred stock of 8
Televax Inc has a cost of debt of 5 percent, a cost of equity of 7 percent, and a cost of preferred stock of 8 percent. The firm has 80,000 shares of common stock outstanding at a market price of $15 a share. There are 20,000 shares of preferred stock outstanding at a market price of $25 a share. The bond issue has a total face value of $1 million and sells at 95 percent of face value. If the tax rate is 14 percent, what is the weighted average cost of capital?
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