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The firm also must pay flotation costs of $15 per bond earnings are exhausted, the firm will use new common stock as the form of
The firm also must pay flotation costs of $15 per bond earnings are exhausted, the firm will use new common stock as the form of common stock equity financing. a. Calculate the after-tax cost of debt b. Calculate the cost of preferred stock. c. Calculate the cost of common stock. d. Calculate the firm's weighted average cost of capital using the capital structure weights shown in the following table, (Round answer to the nearest 0.01% ) a. The after-tax cost of debt using the approximation formula is \%. (Round to two decimal places.) Data table (Click on the icon here D in order to copy the contents of the data table below into a spreadsheet.)
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