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The capital structure for a corporation is provided below. The company plans to maintain its debt structure in the future. If the firm has a
The capital structure for a corporation is provided below. The company plans to maintain its debt structure in the future. | |||||||||||||||
If the firm has a 5 percent after-tax cost of debt, a 12.5 percent cost of preferred stock, and an 15 percent cost of common stock, what is the firm's weighted average cost of capital? | |||||||||||||||
Captial Structure | |||||||||||||||
Bonds | 1055 | ||||||||||||||
Preferred stock | 255 | ||||||||||||||
Common Stock | 3500 |
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