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The firm's target capital structure is the mix of debe, preferred stock, and common equty the firm plans to raise funds for iss future projects.
The firm's target capital structure is the mix of debe, preferred stock, and common equty the firm plans to raise funds for iss future projects. The target proportions of debt, preferred stock, and common equity, along with the cost of these components, are used to caiculate the firmis weighted average cost of captal (wACC) if the firm wis not have to istue new eommon smock, then the cost of retained eamings is used in the firm's WhCC calculation. However, it the frm wil have to issue new common stock, the cost of new common sock should be used in the firmis WACC calculation. intermediste caloutations. Round your answer to two decimal places. or
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