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The expected return on a firm's equity is 9%, and the firm has a yield to maturity on its debt of 2.3%. Debt accounts for
The expected return on a firm's equity is 9%, and the firm has a yield to maturity on its debt of 2.3%. Debt accounts for 32.5%, common equity for 65% and preferred equity for 2.5% of the firm's total market value. If its tax rate is 36%, and the cost of preferred equity is 25%, what is this firm s WACC?
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