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The following information comes from the Galaxy Corporation balance sheet. The value of common stocks is $10,000, retained earnings equals $4,000, total common equity equals
The following information comes from the Galaxy Corporation balance sheet. The value of common stocks is $10,000, retained earnings equals $4,000, total common equity equals $14,000, preferred stock has a value of $2,000 and long-term debt totals $13,000. If the cost of common equity is 10.0%, the cost of preferred shares is 14.0%, the cost of debt is 10.0%, and the firm has a corporate tax rate of 25.0%, what is the firm's WACC adjusted for taxes?
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